Oakland, Calif.-based Kaiser Permanente reported higher revenue and operating income for its nonprofit hospital and health plan units in 2017, according to recently released bondholder documents.
Kaiser saw operating revenue increase to $72.7 billion in 2017. That's up 12.5 percent from operating revenue of $64.6 billion in 2016.
The boost was attributable, in part, to the system's health plan unit. Kaiser saw health plan membership increase by 10.1 percent year over year to 11.8 million members in 2017. About 650,000 of those new members were due to Kaiser's acquisition of Seattle-based Group Health Cooperative in February 2017.
After factoring in expenses, Kaiser reported operating income of $2.2 billion in 2017, up from $1.9 billion in the year prior.
"Despite uncertainty throughout 2017 in the healthcare industry, we continued our solid performance, delivering membership growth and increased access to high-quality and affordable healthcare and coverage," said Kaiser Chairman and CEO Bernard J. Tyson. "We are financially sound as we enter a year that will be challenging, yet transformational, as Kaiser Permanente and the entire industry become more consumer-focused in a world that demands anytime access to affordable healthcare."
Kaiser's net income grew 22.6 percent year over year to $3.8 billion in 2017.
"Our 2017 performance is in line with expectations," said Kaiser Executive Vice President and CFO Kathy Lancaster. "Kaiser Permanente's financial stability allows us to remain a trusted partner in total health and continue to provide high-quality, affordable healthcare."
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