Kaiser Permanente posts $2B web revenue in Q2

Kaiser Permanente delivered one other robust quarter in 2023, in distinction to final 12 months’s multibillion-dollar losses.

On Friday, the Oakland, California-based nonprofit group reported web revenue of $2.08 billion within the second quarter, in contrast with a $1.3 billion loss within the year-ago interval. Income was up 7.2% to $25.17 billion. Quarterly bills rose 4.5% to $24.42 billion.

Working revenue totaled $741 million, up from $89 million a 12 months in the past.

Tom Meier, company treasurer, mentioned in an interview that working revenue has not absolutely returned to pre-COVID-19 ranges, however the system is making good progress. From 2017 to 2022, Kaiser’s common second-quarter working revenue was $772 million, he mentioned.

“It is not a lot the 2023 efficiency. 2022 was just about an all-time low in case you return over the past 5 years,” Meier mentioned. “We nonetheless have a whole lot of work to do to enhance our price construction and develop our membership and make it possible for we are able to proceed to be inexpensive to have the ability to assist our mission.”

Non-operating revenue got here to $1.34 billion, pushed by funding revenue gained amid favorable monetary market situations, Meier mentioned.

Kaiser remains to be battling labor shortages, excessive prices from inflation, and pandemic-related results on entry to medical providers, Meier mentioned. Deferred care continues to influence working prices, however it’s far more manageable after the height final summer season, he mentioned. Contract labor prices are additionally reducing, he mentioned.

Meier mentioned Kaiser is specializing in chopping administrative prices, however that has up to now not led to layoffs.

“For those who’re a frontline care employee, these jobs are being crammed as quick as we are able to fill them. In the event that they’re administrative jobs … there is a course of we’re going via to be rigorous round whether or not there’s an alternate means to supply the executive providers with out bringing on extra headcount,” Meier mentioned.

Kaiser mentioned in February it’s relocating about 1,200 staff from its Oakland regional campus to Pleasanton, California, in early 2024, as half of a bigger workplace consolidation plan to chop prices. The system mentioned the transfer will carry important annual financial savings. Staff may even be centralized on the essential headquarters in downtown Oakland.

In late April, Kaiser introduced plans with Danville, Pennsylvania-based Geisinger Well being to create a nonprofit entity known as Risant Well being that might purchase up well being techniques to construct a nationwide care community. Kaiser pledged to speculate as much as $5 billion over the subsequent 5 years. Meier declined to supply an replace on that enterprise.