Oakland, Calif.-based Kaiser Permanente reported $329 million in operating income (0.3% margin) in 2023, a significant improvement on the $1.3 billion operating loss (-1.3% margin) it reported in 2022.
Operating revenue for Kaiser's health plan, hospitals and their respective subsidiaries hit $100.8 billion in 2023, up from $95.4 billion the previous year. Expenses were $100.5 billion, up from $96.7 billion.
After factoring in nonoperating items, which primarily consists of investment returns, Kaiser's net income for 2023 was $4.1 billion, compared to a $4.5 billion net loss in the prior year.
Kaiser's health plan declined by 51,000 members year over year to more than 12.5 million members. The system attributed the drop to economic factors including the slowing pace of job growth.
"Kaiser Permanente remains committed to providing affordable care and coverage for our members as we continue to mitigate increased costs in this evolving healthcare environment," Kathy Lancaster, executive vice president and CFO, said in a Feb. 9 news release. "By fulfilling our mission, eliminating inefficiencies, and investing in technology, facilities and our communities, we are on a financially sustainable path."
Capital spending for the integrated health system totaled $3.8 billion in 2023, up from $3.5 billion the prior year. As of Dec. 31, Kaiser had 40 hospitals, 618 medical offices and 43 retail and employee clinics.
Kaiser invested $3.1 billion into community benefit programs last year, compared to $2.8 billion the previous year. The programs focused on addressing gun violence, helping more people access healthy food and supporting nonprofits that help people better manage their finances, among others.
Chair and CEO Greg Adams paid tribute to Kaiser's 230,000-plus employees for providing members and patients with a "positive experience at all touch points while also embracing new ways to drive efficiencies, improve access and advance health outcomes."
"Together, we navigated another challenging year and are on a path to deliver on our mission and bring our distinct brand of value-based care to more people," Mr. Adams said