August 9, 2024
Kaiser Foundation Health Plan and Hospitals Q2 2024 financial update
The not-for-profit organization continued its mission of high-quality, affordable care and service.
Financial results
For the quarter ending June 30, 2024, Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective consolidated subsidiaries and affiliates (KFHP/H) reported operating revenues of $29.1 billion and operating expenses of $28.2 billion compared to operating revenues of $25.2 billion and operating expenses of $24.4 billion in the same period of the prior year. Operating income was $908 million for the second quarter of 2024 compared to operating income of $741 million in the second quarter of 2023.
Favorable financial market conditions drove other income (net of other expense) of $1.2 billion in the second quarter of 2024. Other income (net of other expense) in the second quarter of 2023 was $1.3 billion. For the second quarter of 2024, net income was $2.1 billion. Net income was also $2.1 billion for the second quarter of 2023. KFHP/H financial results in the second quarter include Geisinger, which joined Risant Health on March 31, 2024.
KFHP/H typically experiences higher operating margins in the first half of the year due to the annual enrollment cycle. Lower operating margins in the second half of the year are not uncommon because expenses usually increase in part due to the impact of seasonal care while revenues stay relatively flat.
“In 2024, we remain focused on delivering high-quality care and service while evolving to meet changing customer and consumer expectations,” said chair and chief executive officer Greg A. Adams. “Our comprehensive approach to care — from early detection to treatment to recovery and beyond — is why we’re national leaders in cancer, cardiac, and other conditions. I am grateful to our dedicated employees and physicians as we continue to manage through high care volumes and care acuity to help our members and patients achieve their health goals.”
Membership
Kaiser Permanente membership was more than 12.5 million as of June 30, 2024. Membership for Risant Health affiliates was nearly 552,000 as of June 30, 2024.
Capital spending
Capital spending in the second quarter was $889 million, compared to $824 million in the same period of the prior year, as the organization continued to invest strategically in facilities and technology.
“We are committed to our long-term strategy of improving patient outcomes and experiences while driving affordability,” said executive vice president and chief financial officer Kathy Lancaster. “Our second-quarter financial performance allows us to continue to make investments in care and service.”
KFHP/H includes integrated care and coverage under the Kaiser Permanente brand. Kaiser Permanente also includes Risant Health and its subsidiaries.
KFHP/H Financial Summary
Q2 2024 includes Risant Health*
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 involves 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.
