Oakland, Calif.-based Kaiser Permanente spent more than $1 billion on temporary staffing and related costs to keep facilities running during a January–February nurses strike, the health system said in a statement to Becker’s.
The walkout began Jan. 26, affecting about 31,000 front-line registered nurses and healthcare professionals at more than two dozen hospitals and hundreds of clinics. It ended Feb. 24, when the United Nurses Associations of California/Union of Health Care Professionals union accepted Kaiser’s offer of 21.5% across-the-board wage increases over four years. Members ratified the contracts in March. More than 3,000 pharmacy and lab workers represented by United Food and Commercial Workers also walked out for three days in solidarity before returning Feb. 12. UNAC/UHCP called the action the largest strike of nurses and healthcare professionals in U.S. history.
Kaiser said the $1 billion price tag reflected short-term operational spending and should be distinguished from the longer-term wage question. The union had sought increases that Kaiser said would have added roughly $3 billion annually to its payroll; the ratified agreement totals about $2 billion in annual increases. Kaiser also said its 2026 premium increases were among the lowest among peers and expects a similar outlook for 2027.
The Alliance of Health Care Unions said 2025 negotiations initially produced agreements on artificial intelligence, staffing, training and benefits before breaking down over pay. Both sides have said they are working to rebuild the labor-management partnership.
Kaiser reported $9.3 billion in net income in 2025, as health systems broadly navigate workforce pressures.
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