Kaiser posts $772M operating income for Q2
- Kaiser Permanente reported $772 million in operating income for its Q2 2017 — a 57% hike over Q2 2016’s $491 million, but under the $1 billion operating gain in the first quarter.
- Second quarter revenues totaled $18.1 billion, compared with $15.8 billion a year ago.
- The system’s health plan has added 1.1 million members since the start of the year, bringing total membership to about 11.7 million as of June 30. That growth is due in part to Kaiser’s February acquisition of Seattle-based Group Health Cooperative, which brought on board 651,000 new members.
During the second quarter, the Oakland-based health system opened four new medical office buildings and one new hospital and initiated other renovations and replacement projects. Kaiser now claims 36 hospitals and 677 medical office buildings.
Capital expenditures also focused on technology, including telehealth capabilities, that improve patient care and offer greater convenience, the organization said.
Kaiser raised $4.4 billion in three bond offerings in May, saying it would use the funds to expand capacity, physician offices and technology.
Kaiser executives have been strong advocates of the move to value-based care and expanding use of telemedicine. In April, CEO Bernard Tyson said virtual visits account for more than half of members’ 110 million annual physician encounters. He said telehealth not only increases patients’ options for dealing with minor health issues but also benefits Kaiser, which covers 95% of its members on a capitated basis.
The health system was also among a group of organizations and health leaders that released a report recently calling for a value-based healthcare model in the U.S. The first pilot program—a value-based plan to treat heart failure in the Atlanta area — includes 20 payers, providers, suppliers and government organizations.
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