Oakland, Calif.-based Kaiser Permanente reported $156 million in operating income (0.6% margin) for the third quarter, up from a $75 million operating loss (-0.3% margin) in the third quarter of 2022.
For the three months ended Sept. 30, Kaiser's health plan, hospitals and their respective subsidiaries posted $24.9 billion in revenue and $24.7 billion in expenses, compared to $24.3 billion and $24.3 billion, respectively, in the same period of the prior year.
Net income for the third quarter was $239 million, up from a net loss of $1.5 billion in the third quarter of 2022.
"Like other health systems, Kaiser Permanente is continuing to emerge from the pandemic and we are working hard to address our challenges, including competition for fewer workers, the high costs of goods and services, and an increased demand for services due to deferred care," Chair and CEO Greg Adams said in a news release. "Our focus in 2023 is on implementing effective strategies that improve service, access and quality to deliver the best health outcomes for our members."
Capital spending in the third quarter was $825 million compared to $820 million in the same period of the prior year. On Aug 9, the integrated health system opened San Marcos Medical Center, a 206-bed facility in San Diego. Kaiser now comprises 40 hospitals, 618 medical offices and 43 retail and employee clinics.
"In the third quarter, we furthered the long-term health and stability of the organization by maintaining fiscal discipline while increasing access to our high-quality care and service," CFO Kathy Lancaster said. "We are also continuing to expand our digital capabilities and in-person care services to improve the consumer experience."
Kaiser's health plan now has 12.6 million members, reflecting a growth of more than 29,000 members this year.