Citing hefty investment losses, Oakland, Calif.-based Kaiser Permanente saw its net loss reach $1.1 billion in the first quarter of 2020, according to recently released financial results. In the same period one year earlier, Kaiser reported net income of $3.2 billion.
The health system reported operating revenue of $22.6 billion in the first quarter of this year, compared to $21.3 billion one year prior.
The health system also saw its expenses rise to $21.4 billion, an increase of $1.6 billion from the first quarter of 2019.
The system's operating income reached $1.3 billion, compared to $1.5 billion in the first quarter of 2019.
The health system said its first-quarter loss was primarily driven by an investment loss of $2.4 billion in the first quarter of 2020. This compares to a $1.6 billion gain in the first quarter of 2019.
Kaiser said its first-quarter results also reflect costs to prepare for the COVID-19 pandemic, but noted that only a "small portion" of the financial effect of COVID-19 was felt this quarter.
"During the first quarter we began establishing mobile hospitals and triage units, recommissioning retired units, increasing our available inpatient capacity, and acquiring additional equipment to prepare for the potential surge of COVID-19 patients," said Kathy Lancaster, Kaiser's executive vice president and CFO. "Even with all this rapidly escalating preparation and direct care delivery, only a small portion of the financial effects of the pandemic, in terms of lost revenue and increased costs, was experienced in the first quarter."