February 20, 2024

Kaiser Foundation Health Plan and Hospitals report 2023 financial results

Leading, not-for-profit, integrated healthcare organization maintains focus on its mission while navigating a dynamic healthcare environment.

OAKLAND, California., February 9, 2024 /PRNewswire/ — Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) reported annual financial results for 2023, reflecting its commitment to achieving its mission to provide high-quality, affordable care and services amid the ongoing industry-wide challenges of high medical costs and a competitive employment environment.

Key health care cost drivers in 2023 included the high cost of goods and services; prescription drug prices; large amounts of deferred care; continued services on COVID-19, influenza and RSV (respiratory syncytial virus); and costs related to the working environment. Kaiser Permanente met these challenges by reducing administrative costs and pursuing efficiencies while expanding access to high-quality care.

The operating result was $329 million for the year compared to an operating loss of $1.3 billion in 2022. Operating income for 2023 was $100.8 billion as compared to $95.4 billion in 2022. Operating costs were $100.5 billion as compared to $96.7 billion in the previous year.

Apart from the operating income, there were other income (after deduction of other costs). $3.8 billion in 2023, compared to a loss of $3.2 billion in 2022. The other income in 2023 consisted mainly of investment returns, which compensated for the losses suffered in 2022. Due to fluctuations in the financial market, the net profit was $4.1 billion for 2023 compared to a net loss of $4.5 billion for 2022.

“I want to thank the people of Kaiser Permanente for their hard work in 2023 to provide members and patients with a positive experience at all touchpoints while embracing new ways to increase efficiencies, improve access and advance health outcomes,” said chairman and director Greg A. Adams. “Together, we have completed another challenging year and are on track to deliver on our mission and bring our distinctive brand of value-based care to more people.”

Membership

Kaiser Permanente had more than 12.5 million members at the time December 31, 2023a decrease of nearly 51,000 members from the previous year, due to the slowing pace of job growth and other economic factors.

Improving community health

In 2023, Kaiser Permanente supported a wide range of community health programs with an investment of $5.00 $3.1 billionas compared to $2.8 billion the year before. These programs focused on addressing the public health crisis caused by gun violence, helping more people access healthy food, and supporting nonprofits that help people better manage their finances. Notably, the Kaiser Permanente Medical Financial Assistance program has helped nearly 412,000 low-income uninsured patients, more than $668 million in support to cover some or all of their medical costs. In August 2023Kaiser Permanente launched the Kaiser Permanente Community Support Hub, aimed at helping people connect to resources to meet their daily needs, such as food, housing and utilities. Kaiser Permanente screened more than 2.6 million members for social needs in 2023 and connected nearly 350,000 members to vital programs.

Capital expenditures

Kaiser Permanente continued to execute on its capital strategy in 2023. Capital expenditures totaled $3.8 billion, as compared to $3.5 billion the previous year. In August 2023Kaiser Permanente opened San Marcos Medical Center, a 40,000-square-foot facility serving members and patients San Diego County, California. From December 31, 2023Kaiser Permanente had 618 medical offices, 40 corporate hospitals, and 43 retail and employee clinics.

Consumer-oriented digital care and service

Kaiser Permanente invested in advanced technology that supports its physicians and care teams in improving the member experience and patient outcomes. For example:

  • To support easy access to care, there were a total of more than 22 million scheduled phone and video visits by 2023.
  • To help improve medication adherence for better health outcomes, Kaiser Permanente has expanded its digital portfolio to include opt-in prescription refill reminders via text messages and mobile notifications so patients can remember when to take their medications. Members filled nearly 50 million online prescription orders through kp.org or the mobile app in 2023.
  • To help manage ongoing conditions like diabetes and hypertension, more than 86,000 members have enrolled in remote care programs, giving their care teams access to real-time health assessments between medical appointments.

“Kaiser Permanente remains committed to providing affordable care and coverage for our members while continuing to limit increased costs in this changing healthcare environment,” said executive vice president and Chief Financial Officer. Kathy Lancaster. “By fulfilling our mission, eliminating inefficiencies and investing in technology, facilities and our communities, we are on a financially sustainable path.”

Annual financial overview 2023 and 2022

($ in millions)

2023

2022

Operating income

$100,847

$95,408

Operating costs

$100,518

$96,678

Operating result (loss)

$329

($1,270)

Operating margin

0.3%

(1.3%)

Other benefits (net other costs)

$3,793

($3,198)

net income (loss)

$4,122

($4,468)

Capital expenditures

$3,821

$3,528

Note: Certain statements 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 any particular results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, achievements or achievements. performance 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 intend to release any updates or revisions to these forward-looking statements if or when expectations change or events, conditions or circumstances occur on which such statements are based.

About Kaiser Permanente

Kaiser Permanente is committed to shaping the future of healthcare. We are recognized as one of America’s leading health care providers and nonprofit health plans. Founded in 1945, Kaiser Permanente is on a mission to provide high-quality, affordable health care services and improve the health of our members and the communities we serve. We currently serve 12.5 million members across 8 states and the District of Columbia. Care for members and patients is focused on their total health and is guided by their personal physicians, specialists and team of Permanente Medical Group healthcare providers. Our expert and caring medical teams are supported and supported by leading technology advancements and tools for health promotion, disease prevention, state-of-the-art care delivery and world-class chronic disease management. Kaiser Permanente is committed to healthcare innovations, clinical research, health education and supporting community health. For more information, visit about.kp.org.

Contact:
Stephen Shivinsky
[email protected]

SOURCE Kaiser Permanente

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