In Brief: Kaiser Permanente Reports Strong Third Quarter

Kaiser Permanente reported healthy gains in both operating revenue and investment returns in the third quarter ending Sept. 30.

The Oakland-based Kaiser reported operating revenue for the quarter of $16.2 billion, up from $15.3 billion for the year-ago quarter, a gain of just under 6%. Operating income was $672 million for the quarter, compared to $363 million a year ago.

Net non-operating – or investment income – was $452 million for the quarter, compared to a net loss of $478 million a year ago. Net income for the quarter was $1.1 billion, compared to a net loss of $115 million in the year-ago quarter.

“Kaiser Permanente is continuing our trend of stable growth and solid operating income, with strong returns in the financial market,” said Kathy Lancaster, Kaiser's chief financial officer. “We continue to be disciplined in our approach and remain focused on our goal of providing high-quality, affordable healthcare while investing in the communities we serve to promote health and well-being.”

For the first nine months of the year, Kaiser's revenue was $48.3 billion, up 6% from the $45.6 billion it reported during the third quarter of 2015. Operating income to date has been flat at $1.9 billion, the same total through the first three quarters of last year.

The company also said its capital investments totaled $1.9 billion for the first nine months of the year, unchanged from the same time period in 2015. It added 376,000 new enrollees through the first nine months of the year.