Oakland, Calif.-based Kaiser Permanente said operating revenue for its nonprofit hospital and health plan units climbed 5.9 percent year over year to $16.2 billion in the third quarter of 2016.
Kaiser ended the third quarter with operating income of $672 million, up 85.1 percent from $363 million in the same period of 2015, according to recently released bondholder documents.
"Kaiser Permanente is continuing our trend of stable growth and solid operating income, with strong returns in the financial market," said Kathy Lancaster, executive vice president and CFO.
Kaiser's financial success is attributable, in part, to growth in its insurance division. The system's health plan membership has grown by about 376,000 since Dec. 31, 2015. As of Sept. 30, the health plan had more than 10.6 million members.
Looking at the first nine months of 2016, Kaiser recorded revenues of $48.3 billion, up 5.9 percent from the same period of the year prior. Operating income was flat year over year in the first nine months of this year.
"Kaiser Permanente's performance year-to-date is strong," said Chairman and CEO Bernard J. Tyson. "Our focus continues to be on delivering and improving affordability, quality, service and access for our members and communities."
More articles on healthcare finance:
Quorum Health adds 6 more hospitals to sale pipeline
Final site-neutral payment rules create uncertainty around HOPD lease agreements
5 skills CFOs should develop in the next 5 years