Kaiser Permanente nearly doubled its operating income in its third quarter to $672 million as new enrollees to the company's health plan brought premium revenue and raised volumes at Kaiser's hospitals and clinics, the company reports.
The system reported $672 million in operating income compared with $363 million in the year-earlier quarter. Net income in the quarter jumped to $1.1 billion on revenue of $16.2 billion on a $452 million non-operating gain, predominantly from investment returns, said Tom Meier, senior vice president and corporate treasurer at Kaiser.
In the year-earlier third quarter, Kaiser posted a net loss of $115 million on revenue of $15.3 million as investment returns were a loss of $478 million.
Meier said the 378,000 members that Oakland, Calif.-based Kaiser has added to its health plan this year are having a positive impact across the company. Kaiser had 10.6 million members as of Sept. 30.
“We've had strong membership growth,” he said.
Kaiser's capital spending through the nine months was $1.9 billion, flat against a year ago. Meier said the money is helping Kaiser expand patient access points and improve operations, including through investment in information technology.