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Kaiser Permanente is in a much different financial position than it was a year ago. Posted Net income for the third quarter was $239 million. This widened from a net loss of $1.5 billion in the third quarter of 2022.
The Oakland, California-based organization also posted strong operating profits. He had an operating loss of $156 million in the third quarter of this year, compared to $75 million in the third quarter of 2022.
Kaiser Foundation Health Plan, Kaiser Foundation Hospital, and their respective subsidiaries (KFHP/H) reported operating revenues of $24.9 billion and operating expenses of $24.7 billion, compared to operating revenues of $24.3 billion and operating expenses of $24.3 billion in the prior-year period. has been reported.
Other income (excluding other expenses) for the third quarter was $83 million, compared to a loss of $1.5 billion in the third quarter of 2022. Net income was $239 million compared to his $1.5 billion net loss in the same period last year.
“Like other health systems, Kaiser Permanente continues to emerge from the pandemic, navigating challenges such as competition for fewer workers, higher costs of goods and services, and increased demand for services due to deferred care. We are working hard to achieve this goal,” said Greg A. Adams, Chairman and Chief Executive Officer. “Our focus in 2023 is to implement effective strategies to improve service, access, and quality to provide the best health outcomes for our members. Thanks to our efforts, we have achieved results in these areas and will continue to do so.”We are committed to fulfilling our mission. ”
what is the impact
Kaiser said it had more than 12.6 million members as of Sept. 30, an increase of more than 29,000 members since the end of last year.
Capital expenditures in the third quarter were $825 million, compared with $820 million in the prior-year period. Kaiser Permanente announced on August 9 that it will open its new seven-story, 433,000-square-foot San Marcos Medical Center, expanding access to health care for its members in San Diego County, California.
As of Sept. 30, Kaiser Permanente had 618 clinics, 40 hospitals, and 43 retail stores and employee clinics.
“In the third quarter, we continued to strengthen the long-term health of our organization by increasing access to high-quality care and services while maintaining fiscal discipline,” said Cathy Lancaster, executive vice president and chief financial officer. “It promoted stability.” “At Kaiser Permanente, we also continue to expand our digital capabilities and in-person care services to enhance the consumer experience.”
Kaiser Permanente had a tough fiscal year in 2022, but it has been on a recovery trend throughout the year, ending the second quarter of 2023 with operating revenues of $25.2 billion and expenses of $24.4 billion. Revenues increased year over year and expenses decreased.
Kaiser said financial market conditions were favorable this year and investment returns were strong.
Mr. Kaiser has historically had high operating margins in the first half of the year and lower operating margins in the second half, as expenses tend to increase relative to operating revenue throughout the year, due in part to the annual registration cycle and seasonality. He said it would be lower. Care.
Last month, Kaiser Foundation Health Plan and the California Department of Managed Health Care (DMHC) reached a $200 million settlement agreement that makes significant changes to the plan’s delivery of behavioral health services. The settlement agreement includes a $50 million fine and requires Kaiser Permanente to take corrective actions to address deficiencies in the implementation and oversight of behavioral health care plans for its members. .
Email the author: Jeff.Lagasse@himssmedia.com