Kaiser Permanente Sees Net Loss of $1.3B in Q2

Hospitals and health systems have been struggling with the ongoing repercussions of the COVID-19 pandemic.

Hospitals and health systems have posted lackluster earnings for the second quarter, which proved to be financially challenging for organizations, and Kaiser Foundation Health Plan isn’t immune to these issues, having posted a net loss of $1.3 billion for the quarter versus $3.0 billion net income in the second quarter of 2021.

Hospitals and health systems have been struggling with the ongoing repercussions of the COVID-19 pandemic, which has resulted in a continued labor shortage and increased expenses for organizations.

"While the unprecedented effects of the pandemic will be felt for years to come, Kaiser Permanente’s focus on our mission remains steadfast as we continue to adapt to an ever-changing landscape," CEO Greg Adams said in the earnings report.

Kaiser reported total operating revenues of $23.5 billion and total operating expenses of $23.4 billion, compared to total operating revenues of $23.7 billion and total operating expenses of $23.3 billion in the same period of the prior year. The organization also posted a decline in operating income of $89 million, compared to $349 million in the second quarter of 2021.

"Much like the entire healthcare industry, we continue to address deferred care while navigating COVID-19 surges and associated expenses," Kaiser executive vice president and CFO Kathy Lancaster, said in the earnings report. "Kaiser Permanente’s integrated model of providing both care and coverage enables us to meet these challenges as demonstrated by our moderate increase in year-over-year operating expenses for the second quarter. As we work through the ongoing uncertainty of the pandemic, we continue to manage rising costs, supply chain challenges, labor shortages, and escalating demand for COVID-19 testing while fulfilling our mission to improve the health of our 12.6 million members and the communities we serve."