Kaiser Foundation Health Plan and Hospitals Q2 2021 financial update

As a nonprofit health care organization, Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective subsidiaries (KFHP/H) advance their mission of providing high-quality, affordable care through integrated care delivery and coverage.

Financial results

For the quarter ending June 30, 2021, KFHP/H reported total operating revenues of $23.7 billion and total operating expenses of $23.3 billion. For the same period in 2020, total operating revenues were $22.1 billion and total operating expenses were $20.0 billion. Operating income this quarter was $349 million, a decline compared to $2.1 billion in the second quarter of 2020, reflecting that members are resuming the care deferred because of the pandemic. Favorable financial market conditions resulted in total other income and expense of $2.6 billion in the second quarter of this year, compared to $2.5 billion in the same period of the prior year. As a result, net income was $3.0 billion this quarter, compared to $4.5 billion in the second quarter of 2020.

“We deeply and sincerely appreciate our incredible Kaiser Permanente health care professionals, physicians, and support staff who continue to serve on the front lines of the pandemic,” said chair and chief executive officer, Greg A. Adams. “The COVID-19 health threat is not over, and we will continue to focus our resources on providing needed care for our patients and increasing vaccination rates to protect the health and safety of our workforce, members, and the communities we serve.”

Membership

Kaiser Permanente’s membership remains steady totaling almost 12.5 million as of June 30, 2021, reflecting a growth in membership of almost 141,000 since December 31, 2020.

“The stability of Kaiser Permanente’s integrated model, which provides both care and coverage, continues to help us navigate through the pandemic as we manage ongoing COVID-19 expenses and resumption of care. It enables us to support our almost 12.5 million members and provide resources to our communities during this challenging time,” said executive vice president and chief financial officer Kathy Lancaster. “This strong foundation positions us to meet the immediate and long-term needs of those who come to us for care.”

Capital spending

For the quarter ending June 30, 2021, capital spending totaled $864 million, compared to $907 million in the second quarter of the prior year. During the second quarter of 2021, Kaiser Permanente opened 3 new medical offices, including a 400,000-square-foot medical office in Redwood City, California, the 62,000-square-foot medical office in Berkeley, California, and the 40,000-square-foot West Oahu Medical Office in Kapolei, Hawaii. As of June 30, 2021, Kaiser Permanente has 727 medical offices nationwide, 543 pharmacies, and 39 hospitals. 

Q2 2021 and Q2 2020 financial summary

Note: Certain statements included in this document may constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used, such as “plan,” “project,” “forecast,” “expect,” “estimate,” “budget,” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements described to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Accordingly, actual results will vary and the variations may be material. None of the KFHP/H organizations plan to issue any updates or revisions to those forward-looking statements if or when expectations change, or events, conditions, or circumstances on which such statements are based occur.