Leading integrated health care organization maintains high-quality, affordable care while improving member and community health as the COVID-19 pandemic continues.
Kaiser Permanente’s mission is to provide high-quality, affordable health care services and to improve the health of its members and the communities it serves. As a nonprofit health care organization, Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective subsidiaries (KFHP/H) advance this mission through investments in integrated care delivery and coverage.
For the quarter ending March 31, 2021, KFHP/H reported total operating revenues of $23.2 billion and total operating expenses of $22.2 billion, compared to total operating revenues of $22.6 billion and total operating expenses of $21.4 billion in the same period of the prior year. Operating income was $1.0 billion or 4.4% of total operating revenues in the first quarter of this year, compared to $1.3 billion or 5.5% in the first quarter of 2020. Total other income and expense was $1.0 billion in the first quarter of this year, compared to a loss of ($2.4) billion in the same period of the prior year, which was generated largely by market losses. Net income was $2.0 billion this quarter compared to a net loss of ($1.1) billion in the first quarter of 2020. Comparatively, net income for the first quarter of 2019 was $3.2 billion, approximately 60% more than the $2.0 billion reported in the first quarter of 2021.
“Kaiser Permanente continues to focus on improving the health and safety of our members, workforce, and communities during this pandemic, while providing COVID-19 testing, treatment, and vaccination,” said chair and chief executive officer Greg A. Adams. “In the first quarter of 2021, we have administered more than 3.4 million vaccines and enabled equitable vaccine access for our members and our communities.”
As part of Kaiser Permanente’s continuing response to the COVID-19 pandemic and the January surge, during the quarter ending March 31, 2021, Kaiser Permanente has:
Kaiser Permanente’s membership totaled approximately 12.5 million as of March 31, 2021, reflecting a growth in membership of over 129,000 since December 31, 2020.
“Our results allow us to deliver on our mission of providing high-quality, affordable care even during this global health crisis,” said executive vice president and chief financial officer Kathy Lancaster. “We’re proud that throughout this pandemic, our unique integrated model enabled us to provide our members with options to seamlessly transition from commercial and employer-sponsored plans to individual or government-sponsored plans. This meant members could keep their care provider and coverage, despite financial hardship or loss of employer-sponsored health coverage.”
For the quarter ending March 31, 2021, capital spending totaled $906 million, compared to $912 million in the first quarter of the prior year. As of March 31, 2021, Kaiser Permanente has 724 medical offices nationwide, along with 39 hospitals, and 56 retail and workplace clinics.
|($ in millions, except %)||Q1 2021||Q1 2020|
|Total operating revenues||$23,185||$22,604|
|Total operating expenses||$22,155||$21,352|
|Total other income and expense||$1,003||($2,396)|
|Net income (loss)||$2,033||($1,144)|
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.