Kaiser Foundation Health Plan and Hospitals Report 2021 Financial Results

OAKLAND, CA., February 11, 2022 /PRNewswire/ — Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) released their 2021 annual financial results. Total operating revenue for 2021 was $93.1 billion compared to $88.7 billion in 2020. Total operating expenses were $92.5 billion compared to $86.5 billion in the previous year. The operating result was $611 millioni.e. 0.7% of operating revenue, compared to $2.2 billion in 2020. Increased caregiving expenses due to COVID-19 outbreaks contributed to lower operating income.

“After almost 2 years, the COVID-19 pandemic continues to impact Kaiser Permanente as well as our daily lives,” said the Chairman and CEO. Greg A. Adams. “We quickly rolled out vaccines, and now boosters, and administered more than 9 million COVID-19 tests while managing unpredictable new variants like delta and omicron as they emerged. Throughout Through this crisis, gratitude goes to our dedicated staff and physicians who have remained focused on providing care and strong support to members and communities.”

Like other organizations, Kaiser Permanente benefited from a strong investment performance thanks to robust financial markets during the year, resulting in total other income and expenses of $7.5 billion compared to $4.1 billion in 2020. This strong increase in investment performance more than offset the $1.6 billion decrease in operating profit resulting in a 2021 net profit of $8.1 billion compared to the net result of $6.4 billion in 2020.

Capital expenditures totaled $3.5 billion compared to $4.0 billion the previous year. In 2021, Kaiser Permanente opened 11 medical practices. Kaiser Permanente now includes 734 medical practices, 39 owned-and-operated hospitals, and 58 retail and jobsite clinics.

Membership

Membership of Kaiser Permanente as of December 31, 2021, was 12.5 million, reflecting an annual increase of nearly 185,000 members. Government programs that help people maintain health care coverage during the pandemic have led to an increase in membership with individual, Medicare and Medicaid plans. Medicaid growth drove more than half of the increase in enrollment in 2021.

“In 2021, we continued to provide care for an increasing number of COVID-19 patients, while expanding COVID-19 testing and establishing mass vaccination sites to vaccinate our members, our employees and our communities.Despite additional surges, our members continued to receive preventative, routine and elective personal care,” said Executive Vice President and Chief Financial Officer Kathy Lancaster. “Our financial performance underscores the strength of our integrated model, which allows us to weather unexpected challenges such as the COVID-19 pandemic while continuing to serve our members.”

Kaiser Permanente COVID-19 Response

In 2021, Kaiser Permanente managed the ongoing care of members through various COVID-19 surges driven by new variants, increased testing demands and the deployment of the COVID-19 vaccine.

Key 2021 COVID-19 pandemic data highlights include:

  • Caring for over 800,000 COVID-19 patients
  • Providing hospital care to more than 60,000 patients with COVID-19
  • Administer over 10.5 million vaccine doses, including boosters, to members and non-members
  • Completion of 9.4 million COVID-19 diagnostic tests

Leverage virtual care

Caring for its members through 28.8 million telehealth visits and nearly 15.9 million online visits, Kaiser Permanente has used investments in technologies that enable safe and convenient care to meet the increased demand for virtual care offerings over the year. Members visited kp.org and the Kaiser Permanente mobile app more than 582 million times for activities such as sending secure messages to clinicians, viewing lab results and performing 28.7 million prescriptions.

Improve community health

In 2021, Kaiser Permanente continued its longstanding commitment to improving the health of its members and the communities it serves by investing $2.6 billion in community health programs. The Kaiser Permanente medical financial assistance program has provided nearly 370,000 low-income, uninsured or underinsured patients, a total of more than $460 million assistance to cover part or all of their medical expenses.

Annual financial summary 2021 and 2020

(in millions of dollars)

2021

2020

Total operating revenue

$93,136

$88,726

Total operating expenses

$92,525

$86,509

Operating result

$611

$2,217

Operating margin

0.7%

2.5%

Total other income and expenses

$7,468

$4,136

Net revenue

$8,079

$6,353

Capital expenditure

$3,518

$4,007

Note: Certain statements included in this document may constitute “forward-looking statements”. Such statements are generally identifiable by the terminology used, such as “plan”, “project”, “forecast”, “expected”, “estimate”, “budget” or other similar words. The achievement of certain results or other expectations contained in these forward-looking statements involves known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements described herein to differ materially from the results, future performance or achievement. achievements expressed or implied by these forward-looking statements. Therefore, actual results will vary and the variations may be material. None of the KFHP/H organizations expects to release updates or revisions to these forward-looking statements if or when expectations change, or if events, conditions or circumstances on which these statements are based occur.

About Kaiser Permanente

Kaiser Permanente is committed to helping shape the future of healthcare. We are recognized as one of America’s leading health care providers and nonprofit health plans. Founded in 1945, Kaiser Permanente’s mission is to provide affordable, high-quality health care services and improve the health of our members and the communities we serve. We currently serve 12.5 million members in 8 states and the District of Colombia. Care for members and patients is focused on their overall health and guided by their physicians, specialists and team of personal caregivers from Groupe Médical Permanente. Our expert and caring medical teams are empowered and supported by technological advancements and state-of-the-art tools for health promotion, disease prevention, advanced care delivery and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education and community health support. For more information, visit about.kp.org.

Contact:
Mark Brown
510-271-6328
[email protected]

SOURCE Kaiser Permanente

Comments are closed.