Healthcare Roundup: Kaiser's Investment Wallop, HCA Slows Spending, Waxman-Dingell Showdown, and More

Kaiser reports big investment losses — The nonprofit managed-care group Kaiser Permanente reported a total loss of $399 million in the third quarter, down from a $654 million profit a year earlier. The biggest problem: A $706 million investment loss in the quarter, which Kaiser didn’t further characterize. Kaiser also reported a slight dip in membership, to 8.6 million from nearly 8.7 million three months earlier. [Sources: SF Business Times, Kaiser Permanente]HCA slows capital spending –  The Nashville, Tenn., hospital chain said it will limit spending on capital spending by slowing some of its larger expansion projects, although it didn’t provide numbers. HCA will also convert bond interest payments due next May into new bonds, saving $144 million in cash. HCA’s net income dropped 71 percent to $86 million in the third quarter. [Source: Modern Healthcare]

Health Net realigns executive duties — The mid-sized health-insurance company is rejuggling some executive responsibilities in the wake of disappointing third-quarter earnings. Health Net’s board directed CEO Jay Gellert to hand over operational responsibilities to COO James Woys; Gellert will focus on strategy instead. The company’s health-plan director, Stephen Lynch, will also retire in February. [Source: LA Times, LA Business]

Tight credit delays Tenet medical-building sale — Tenet Healthcare has put off a planned sale of medical-office buildings until 2009, thanks to difficulties in arranging financing for the deal. Its sale of two Los Angeles hospitals to the University of Southern California has also been delayed because of an extended due-diligence process. [Source: Modern Healthcare]

Waxman takes aim at Dingell in Congress — Henry Waxman, the California Democrat who runs the House Oversight and Government Reform Committee, has launched a bid to unseat baron John Dingell, a Michigan Democrat, as chairman of the powerful House Energy and Commerce Committee. Energy and Commerce, often said to hold jurisdiction over anything that “moves, burns or is sold,” will play a key role in any healthcare-reform legislation that moves through the next Congress. [Source: CongressDaily via kaisernetworks.org]

Voters approve $930M for California children’s hospitals — Californians approved Proposition 3, which will funnel $930 million to 13 children’s hospitals across the state over the next 30 years. The money will largely cover seismic retrofitting and chronic-care costs. [Source: Modern Healthcare]