Oakland, Calif.-based Kaiser Permanente has reported strong financials for fiscal year 2014, with its net income increasing to $3.1 billion, up from $2.7 billion the preceding year.
Including Kaiser Foundation Hospitals, Kaiser Foundation Health Plan and their subsidiaries, Kaiser Permanente's operating revenue grew to $56.4 billion in FY 2014, up from $53.1 in fiscal 2013.
A large contributor to Kaiser's revenue growth was an increase in its health plan membership. Total membership increased by more than 510,000 members over the past year, and as of Dec. 31, 2014, the plan had approximately 9.6 million members.
Kathy Lancaster, executive vice president and CFO of Kaiser Foundation Hospitals and Health Plan, was pleased with the FY 2014 financials.
"Our financial performance has positioned us to offer lower premium increases for 2015 while also ensuring that we can make the necessary ongoing investments in our care delivery system to continue providing our members, patients, customers and communities with high-quality and affordable 21st century healthcare," she said.
More articles on healthcare finance:
7 hospitals receive credit downgrades in past month
Trends in the RCM environment: Q&A with Greenberg Advisors' CEO
Moody's lowers outlook on for-profit hospital sector