Kaiser's net income nearly triples to $7.4B in 2019

Oakland, Calif.-based Kaiser Permanente saw its revenue, operating income and net income increase in 2019.

Kaiser saw its operating revenue increase to $84.5 billion in 2019. This is an increase of 6 percent from last year, in which Kaiser reported operating revenue of $79.7 billion. 

The boost in revenue was attributed to a strong investment performance and an increase in health plan membership. The health plan added more than 81,000 members in 2019 and now serves more than 12.2 million members in eight states and Washington, D.C.

"Our financial results allow us to make capital investments, deploy new technologies and drive affordability for our members," said Kaiser's executive vice president and CFO Kathy Lancaster. "They position Kaiser Permanente to be innovative in a rapidly changing environment."

Kaiser saw its expenses hit $81.8 billion in 2019, up from $77.8 billion in the year prior. 

The increase in expenses was due to medical inflation as well as membership growth, Kaiser's Corporate Treasurer Tom Meier told Becker's.

After factoring in expenses, Kaiser saw its operating income rise to $2.7 billion, or 3.2 percent of operating revenues. This compares to $1.9 billion, or 2.4 percent of operating revenues, in 2018.

Kaiser's net income nearly tripled year-over-year from $2.5 billion in 2018 to $7.4 billion in 2019. 

Nearly two-thirds of its net income was driven by its investments, Mr. Meier said.

In 2019, Kaiser opened 17 new medical offices. With those additions, Kaiser comprises 712 medical offices, 39 hospitals and 50 retail and employee-based clinics. Kaiser also has more than 95 new medical offices in design or construction phases.

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