- Kaiser Permanente reported a net loss of $1.3 billion in the second quarter, compared to net income of $3 billion in the same period a year ago, stung by investment market conditions.
- Operating income fell to $89 million in the latest quarter, down from $349 million in the second quarter of 2021.
- The Oakland, California-based health system said its integrated model of providing both care and coverage helped it meet the challenges of treating patients who deferred care during the pandemic while responding to surges in COVID-19 infections and related expenses.
Kaiser is the latest health system to see investments take a hit in the second quarter, which is proving to be a rough one for health systems. Fellow California-based provider Sutter Health also reported a net loss in the quarter after its investment income took a dip.
The four largest for-profit hospital operators grappled with weaker income and declining patient admissions in the period, compared to the prior year.
Kaiser recorded total operating revenues of $23.5 billion and operating expenses of $23.4 billion, compared to revenues of $23.7 billion and expenses of $23.3 billion in the same period a year ago.
“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," Kaiser Chief Financial Officer Kathy Lancaster said in a statement.
Reflecting its investment market challenges, Kaiser's other income and expense line showed a quarterly loss totaling $1.4 billion. Other income and expense was $2.6 billion in the same quarter last year, the system said.
Capital spending in the latest quarter totaled $789 million, compared to $864 million in the second quarter of the prior year, supporting the system's ongoing commitment to planned investments in buildings, infrastructure and technology, Kaiser said.
Kaiser had record net income of $8.1 billion in 2021, as investment returns more than made up for a decline in operating income from rising COVID-19 expenses.