Oakland, Calif.-based Kaiser Permanente recorded a net income of $2 billion in the first quarter of 2021, up from a net loss of $1.1 billion recorded in the same quarter last year, according to financial data released May 7.
For the quarter ended March 31, the integrated healthcare provider with 39 hospitals recorded operating revenue of $23.2 billion, up from $22.6 billion recorded in the same quarter last year. Additionally, Kaiser saw its expenses rise 3.7 percent to $22.2 billion. Kaiser attributed the expense increase to several positives, including growth in its health plan.
Kaiser said its health plan membership grew by 129,000 members in the first quarter. It now has more than 12.5 million members.
In the first quarter, Kaiser saw its operating income reach $1 billion, an operating margin of 4.4 percent. This compares to a $1.3 billion operating income in the first quarter of last year and an operating margin of 5.5 percent.
Total other income and expenses, which includes investment income, reached $1 billion in the first quarter. In the same quarter last year, Kaiser saw a loss of $2.4 billion, generated largely by market volatility.
"We had a relatively strong investment portfolio contributed by the rebound in the financial market that also contributed to our results," Tom Meier, corporate treasurer of Kaiser Permanente, told Becker's Hospital Review.
Capital spending totaled $906 million in the first quarter, which included maintenance on existing buildings and other ongoing projects, Mr. Meier said.
The capital spend total was about the same as the first quarter of last year.