Kaiser Foundation Health Plan and Kaiser Foundation Hospitals have released their financial results for the first nine months of 2024.
The organization reported a year-to-date operating revenue of $85.4 billion, an increase from $75.3 billion in the same period last year. Operating expenses also rose to $84.2 billion compared to $74.1 billion last year.
The organization reported an operating income of $1.2 billion, slightly up from $1.1 billion in the previous year.
The financial landscape for Kaiser Permanente has been positively influenced by favorable investment market conditions, contributing to a significant increase in nonoperating income. For the first nine months of 2024, this figure reached $4.4 billion, up from $2.4 billion in 2023.
Additionally, a one-time net gain of $4.6 billion from the acquisition of Geisinger Health by Risant Health, Inc. further bolstered the net income to $10.3 billion, compared to $3.5 billion in the same timeframe last year.
In contrast, the third quarter of 2024 presented challenges for Kaiser Foundation Health Plan. The organization reported operating revenues of $29.0 billion, up from $24.9 billion in the same quarter of 2023. However, operating expenses also increased to $29.6 billion, leading to an operating loss of $608 million. This marks a decline from the operating income of $156 million reported in the third quarter of the previous year. The financial difficulties in the third quarter can be attributed to several factors, including higher-than-expected patient acuity and pharmacy costs.
Kaiser Permanente's membership stood at nearly 12.5 million as of September 30, 2024, with Risant Health affiliates contributing over 552,000 members. Capital spending has remained consistent, totaling $2.6 billion year-to-date. In the third quarter alone, capital expenditures reached $922 million, up from $825 million in the same period of 2023.
The organization is focused on managing resources while delivering high-quality care and is committed to innovation and adaptation.