Kaiser's net income dips 35% to $653M

Oakland, Calif.-based Kaiser Permanente reported higher revenue for its nonprofit hospital and health plan units in the second quarter of 2018, but the system ended the period with lower net income.

Kaiser's operating revenue climbed to $19.6 billion in the second quarter of this year. That's up 8 percent from revenue of $18.1 billion in the same period of 2017.

The boost was attributable, in part, to the system's health plan unit. In the first half of 2018, Kaiser added 453,000 health plan members. As of June 30, Kaiser had 12.2 million members.

Kaiser's expenditures in the second quarter of 2018 included capital spending of $735 million, which includes investments in upgrading and opening new facilities, as well as in technology. In the second quarter of this year, Kaiser opened five new medical offices in California, bringing the system's total number of medical offices nationwide to 689.

Kaiser reported operating income of $345 million in the second quarter of this year, down 47 percent from $656 million in the same period of 2017.

After factoring in nonoperating income, Kaiser ended the second quarter of 2018 with net income of $653 million, down 35 percent from net income of $1 billion in the same period of the year prior.

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