A message from John August, Executive Director for the Coalition of Kaiser Permanente Unions

As you know, despite positive results in operations for 2008, Kaiser Permanente posted a net loss of $794 million for the year, compared to net income of $2.2 billion in 2007.

What this clearly means is that even though our frontline union members – especially those in UBTs – contributed admirably this year to operations, it was not enough to insulate the organization from the larger financial crisis.

We know the current economic crisis is of historic proportions. Unemployment is rising quickly, the stock market is sinking, and government deficits are growing. SCHIP, Medicaid, universal coverage and reduced payments from Medicare are in our future; for KP these represent challenges due to rising eligibility at lower reimbursement rates. We have to make these sectors work because it is unlikely that huge membership growth will come from traditional insurance.

Our task is clear and urgent. We must make the KP model work the way our founders Bridges, Garfield and Kaiser envisioned: preventive, affordable health care for all working families. Our strategy is UBTs improving service, quality, affordability, and the workplace in every department.

KP is best positioned – we have the people, the technology, the mission and the strategy – to deliver affordable care on a large scale.