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Kaiser Permanente posted net income of $239 million for the third quarter and is in a different financial position than a year ago. This is up from a net loss of $1.5 billion in Q3 2022.
The Oakland, Calif.-based company reported strong operating income, which was $156 million in the third quarter of this year, with an operating loss of $75 million in the third quarter of 2022.
Kaiser Foundation Health Plans, Kaiser Foundation Hospitals and its subsidiaries (KFHP/H) reported operating income of $24.9 billion and operating expenses of $24.7 billion, compared with operating income of $24.3 billion and operating expenses of $24.3 billion in the same period last year. .
Other income (net of other expenses) was $83 million for the third quarter, compared to a loss of $1.5 billion in Q3 2022. Net income was $239 million compared to a net loss of $1.5 billion in the same period last year.
“Like many other health systems, Kaiser Permanente continues to emerge from the pandemic and we are working hard to address our challenges, including competition for smaller staff, higher costs of goods and services and increased demand for services due to delayed care,” said Chairman and CEO Greg A. Adams. “In 2023, our focus is on implementing effective strategies that improve service, access and quality to provide better health outcomes for our members. Thanks to the concerted and continuous efforts of our staff and physicians, we are seeing results in these areas and we remain committed to fulfilling our mission.”
What is the effect?
As of Sept. 30, membership was more than 12.6 million, an increase of more than 29,000 members since the end of last year, Kaiser said.
Capital expenditures in the third quarter were $825 million, compared to $820 million in the same period last year. Kaiser Permanente opened its new seven-story, 433,000-square-foot San Marcos Medical Center in 2010. It opened Aug. 9, which it says will expand access to health care for members in San Diego County, California.
As of Sept. 30, Kaiser Permanente had 618 medical offices, 40 hospitals and 43 retail and employee clinics.
“In the third quarter, we enhanced the long-term health and stability of the organization while maintaining fiscal discipline while increasing access to high-quality care and services,” said Kathy Lancaster, executive vice president and chief financial officer. “At Kaiser Permanente, we continue to expand our digital capabilities and in-person care services to improve the consumer experience.”
The biggest trend
Kaiser Permanente had a difficult financial year in 2022, but has been on a rebound throughout the year, finishing the second quarter of 2023 with operating revenues of $25.2 billion, compared to $24.4 billion. Year by year income has increased and expenditure has decreased.
This year, Kaiser said favorable financial market conditions have led to strong investment returns.
He noted that historically he sees higher operating margins in the first half of the year and lower operating margins in the second half, as expenses increase year-over-year relative to operating income, which is partly due to the annual enrollment cycle and seasonality. Care.
Last month, Kaiser Foundation Health Plan and the California Department of Managed Health Care (DMHC) reached a $200 million settlement agreement to make significant changes to the plan’s delivery of behavioral health care services. The settlement agreement includes a $50 million penalty and requires Kaiser Permanente to take corrective action to address deficiencies in the plan’s delivery and management of behavioral health care for enrollees.
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