November 3, 2023
Kaiser Foundation Health Plan and Hospitals Q3 2023 financials
The nonprofit organization continued to deliver on its mission of high-quality, affordable care and service.
Financial results
For the quarter ending September 30, 2023, Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective subsidiaries (KFHP/H) reported operating revenues of $24.9 billion and operating expenses of $24.7 billion compared to operating revenues of $24.3 billion and operating expenses of $24.3 billion in the same period of the prior year. Operating income was $156 million for the third quarter of this year compared to an operating loss of $75 million in the third quarter of 2022.
Other income (net of other expense) was $83 million for the third quarter compared to a $1.5 billion loss in the third quarter of 2022. For the third quarter, net income was $239 million compared to a net loss of $1.5 billion in the same period of 2022.
“Like other health systems, Kaiser Permanente is continuing to emerge from the pandemic and we are working hard to address our challenges, including competition for fewer workers, the high costs of goods and services, and an increased demand for services due to deferred care,” said chair and chief executive officer Greg A. Adams. "Our focus in 2023 is on implementing effective strategies that improve service, access, and quality to deliver the best health outcomes for our members. Thanks to the concerted and unrelenting efforts of our employees and physicians, we are seeing results in these areas and remain committed to fulfilling our mission.”
Membership
Membership as of September 30, 2023, was more than 12.6 million, reflecting a growth of more than 29,000 members since December 31, 2022.
Capital spending
Capital spending in the third quarter was $825 million compared to $820 million in the same period of the prior year. Kaiser Permanente opened the new 7-story, 433,000-square-foot San Marcos Medical Center on August 9, which expands health care access to members in San Diego County, California. As of September 30, 2023, Kaiser Permanente had 618 medical offices, 40 hospitals, and 43 retail and employee clinics.
“In the third quarter, we furthered the long-term health and stability of the organization by maintaining fiscal discipline while increasing access to our high-quality care and service,” said executive vice president and chief financial officer Kathy Lancaster. “At Kaiser Permanente, we are also continuing to expand our digital capabilities and in-person care services to improve the consumer experience.”
