Kaiser Permanente has continued implementing cost-cutting measures in an attempt to quell losses stemming in part from high medical expenses.
Kaiser has reduced administrative expenses, implemented controls on discretionary spending and streamlined business operations to help offset costs attributed to higher-than-expected utilization, increased patient acuity and pharmaceutical spending, the nonprofit health system said Friday in its third-quarter earnings report.
Related: Kaiser's Risant Health to invest more than $1B in Cone Health
A Kaiser spokesperson said the measures are part of a multi-year strategy, but did not provide more details.
Oakland, California-based Kaiser reported a $608 million operating loss in the third quarter, compared with a $156 million gain in the year-ago period. Net income was $845 million in the third quarter, compared with $239 million a year ago.
CEO Greg Adams said in a news release he remains confident in Kaiser's integrated model and thinks it helps the health system navigate changes in the operating environment.
Kaiser reported a $13 million gain in the quarter related to the Geisinger Health acquisition earlier this year.
Kaiser Foundation Hospitals acquired Geisinger in April and folded it into Risant Health, a new nonprofit formed to create a national value-based care network. Washington, D.C.-based Risant is tasked with acquiring a handful of other systems to add to the network. In June, Risant announced plans to buy Cone Health in Greensboro, North Carolina, as part of a deal expected to close next year.
