Oakland, Calif.-based Kaiser Permanente reported an operating income of $908 million in the second quarter, up from $741 million in the same period last year. Its operating margin grew from 2.9% in the second quarter of 2023 to 3.1% in the second quarter of this year.
For the three months ended June 30, Kaiser's health plan, hospitals and their respective subsidiaries reported revenues of $29.1 billion and operating expenses of $28.2 billion compared to $25.2 billion and $24.4 billion, respectively, in the same period last year.
Net income for the second quarter was $2.09 billion, up slightly from $2.08 billion in the second quarter of 2023. Results for the period include Danville, Pa.-based Geisinger, which joined Risant Health on March 31, 2024.
Kaiser said it generally sees higher operating margins in the first half of the year due to the annual enrollment cycle. Lower operating margins in the second half of the year are not uncommon because expenses typically increase partly due to the effect of seasonal care while revenues remain relatively flat.
"In 2024, we remain focused on delivering high-quality care and service while evolving to meet changing customer and consumer expectations," Chair and CEO Greg Adams said in an Aug. 9 news release. "Our comprehensive approach to care — from early detection to treatment to recovery and beyond — is why we're national leaders in cancer, cardiac and other conditions. I am grateful to our dedicated employees and physicians as we continue to manage through high care volumes and care acuity to help our members and patients achieve their health goals."
Kaiser's health plan has 12.5 million members. Membership for Risant Health affiliates was nearly 552,000 as of June 30.
Capital spending for the health system was $889 million in the second quarter, up from $824 million in the same period last year.
"We are committed to our long-term strategy of improving patient outcomes and experiences while driving affordability," CFO Kathy Lancaster said. "Our second-quarter financial performance allows us to continue to make investments in care and service."