Kaiser sees operating income dip 35.4% in Q2

Kaiser Permanente said operating revenue for its nonprofit hospital and health plan units increased in the second quarter of 2016, but the Oakland, Calif.-based system reported lower operating income and net income than in the same period of the year prior.

Kaiser saw revenue climb 3.27 percent year over year to $15.8 billion in the second quarter of 2016.

That boost was attributable, in part, to the system's health plan unit. Kaiser experienced strong membership gains in the first half of 2016, adding approximately 362,000 members since Dec. 31. As of June 30, Kaiser had about 10.6 million members.

After accounting for expenses, Kaiser ended the second quarter with operating income of $491 million, down 35.4 percent from $760 million in the same period of 2015.

Kasier's net income fell to $708 million in the second quarter of 2016, down from net income of $1 billion in the same period of 2015.

Kaiser Chairman and CEO Bernard J. Tyson was pleased with the system's results in the second quarter. "Despite unprecedented change in the healthcare industry, our performance remains strong and steady," he said.

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