Solid second quarter financial results support integrated care delivery system and sustainable operations
Kaiser Permanente’s mission is to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals (KFHP/H) are non-profit organizations, which means we do not have stockholders who profit from positive financial performance. We devote our financial resources to advance our mission through investments in our integrated care delivery system and in programs and initiatives that improve community health.
For the second quarter ending June 30, 2017, KFHP/H reported a combined total operating revenue of $18.1 billion. Operating income was $772 million and net non-operating income was $240 million in the second quarter. Net income for the second quarter was $1.0 billion.
Kaiser Permanente’s membership has grown by approximately 1.1 million members since December 31, 2016, totaling approximately 11.7 million members as of June 30, 2017. This growth includes membership from the acquisition of Seattle-based Group Health Cooperative on February 1, 2017.
Capital spending reflects continued KFHP/H investments in facilities and technology to support integrated care delivery. In the second quarter of the year, Kaiser Permanente opened four new medical office buildings and one new hospital, and embarked on other significant replacement and renovation projects. These investments bring the number of medical office buildings to 677, along with 39 hospitals to support the needs of our growing membership and communities.
Additional capital expenditures support investments in technology to advance patient care – both in- person and virtually – as well as digital capabilities providing patients greater choice and convenience in accessing Kaiser Permanente’s high-quality, affordable care.
Consistent with our not-for-profit mission, we devote resources to improve the health of the communities we serve. KFHP/H’s community benefit investments provide care for low-income individuals and underserved communities, reinforce community-based health partnerships, and support research and the training of health care workers.
Footnote: Certain statements included in this document herein may constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. 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 that may be 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 assumptions on which such forward looking information may be based. Accordingly, actual results will vary and the variations may be material. Readers of this document should understand the limitations inherent in forward looking data and evaluate whether such data and any underlying assumptions are appropriate for their purposes. These materials may also contain historical market data; however, historical market trends are not reliable indicators of future market behavior. Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries do not plan to issue any updates or revisions to those forward looking statements if or when its expectations change, or events, conditions or circumstances on which such statements are based, occur.