- Kaiser Permanente reported net income increased substantially to nearly $3.2 billion during the first quarter of 2019 compared with about $1.2 billion from the prior-year period.
- The Oakland, California-based system said revenue increased 5% to $21.3 billion during the first quarter compared with the first quarter of last year. Kaiser did note that it changed accounting practices. Operating income "was significantly impacted by several accounting estimates that were favorable when compared to the same period last year."
- Kaiser, which includes its health plan and hospitals, increased its insurance rolls to 12.3 million members from 12.2 million during the first quarter of 2018.
Kaiser's first quarter is usually its strongest as the health system is coming off the fall open enrollment period, CFO Kathy Lancaster said in a statement.
Lancaster characterized the integrated system's first quarter as "solid" and said, "our performance also allows us to make strategic investments in technology, facilities, and people helping to keep care more affordable in today's increasingly competitive environment."
Not-for-profits seem to be recovering after some turbulence.
"After two years of falling revenues, U.S. not-for-profit and public hospitals are showing signs of fiscal stability, with profitability holding steady as revenues and expenses converge," Moody's Investors Service stated in a recent report on fiscal 2018.
For-profit hospital chains reported a mixed bag of results during the latest quarter. HCA beat expectations and increased revenue year over year and logged its 20th straight quarter of admissions growth. Tenet posted a loss for the quarter and a slight fall in admissions.
During the first quarter, Kaiser spent $834 million on capital spending and opened two new medical facilities, putting its total at 696 medical offices nationwide, along with 39 hospitals.
Over the next three years, Kaiser expects to open 80 medical offices. The system is also in the middle of a $500 million project to expand its mental health services.
The organization is also working to secure affordable housing for vulnerable populations. "The fund has already begun making investments in properties near Kaiser Permanente's national headquarters and in other communities in the region," its earnings statement said.