Kaiser Foundation Health Plan and Hospitals report 2023 financial results

Leading nonprofit, integrated health care organization maintains focus on its mission while navigating a dynamic health care environment.

OAKLAND, Calif., Feb. 9, 2024 /PRNewswire/ — Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective subsidiaries (KFHP/H) reported 2023 annual financial results that reflect a commitment to deliver on its mission to provide high-quality, affordable care and services amid ongoing industrywide challenges of high medical costs and a competitive labor environment.

Primary expense drivers for the health care sector in 2023 included the high costs of goods and services; prescription drug prices; high volumes of deferred care; continued COVID-19, flu, and RSV (respiratory syncytial virus) services; and costs associated with the labor environment. Kaiser Permanente met these challenges by reducing administrative costs and pursuing efficiencies while expanding access to its high-quality care.

Operating income was $329 million for the year compared to an operating loss of $1.3 billion in 2022. Operating revenues for 2023 were $100.8 billion compared to $95.4 billion in 2022. Operating expenses were $100.5 billion compared to $96.7 billion in the prior year.

Separate from operating income, other income (net of other expense) was $3.8 billion in 2023, compared to a loss of $3.2 billion in 2022. Other income in 2023 consisted primarily of investment returns, which offset the losses experienced in 2022. As a result of swings in the financial market, net income 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 touch points while also embracing new ways to drive efficiencies, improve access, and advance health outcomes,” said chair and chief executive officer Greg A. Adams. “Together, we navigated another challenging year and are on a path to deliver on our mission and …

Full story available on Benzinga.com