Oakland, Calif.-based Kaiser Permanente reported $741 million in operating income for the second quarter, up from $89 million in the same period in 2022. Its operating margin grew from 0.4 percent to 2.9 percent.
For the three months ended June 30, Kaiser's health plan, hospitals and their respective subsidiaries posted $25.2 billion in revenue and $24.4 billion in expenses, compared to $23.5 billion and $23.4 billion, respectively, for the same period last year. Operating expenses were up in the period almost 4.5 percent compared with the second quarter of 2022.
Net income for the 39-hospital system was $2.1 billion compared to a net loss of $1.3 billion last year during the same period.
The system's health plan totaled almost 12.7 million people as of June 30, an increase of 81,000 since the end of 2022.
"The process of building our financial performance back to pre-pandemic levels requires that we continue to redesign our cost structure to support investments in our facilities, technology, and people while staying competitive in a dynamic health care marketplace," Kathy Lancaster, CFO, said in an Aug. 4 release.