Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) today reported a combined total operating revenue of $15.8 billion for the quarter ending June 30, 2016, compared to $15.3 billion in the same period in 2015. Operating income was $491 million in the second quarter of 2016, compared to $760 million in the same quarter last year. KFHP/H reported net non-operating income of $216 million in the second quarter of 2016, compared to $248 million in the same quarter of 2015. As a result, net income for the second quarter was $707 million, versus $1.0 billion in the same period of 2015.
“Kaiser Permanente remains committed to delivering affordability and high-quality care for our 10.6 million members across the country,” said Chairman and CEOBernard J. Tyson. “Despite unprecedented change in the health care industry, our performance remains strong and steady.”
For the six months ending June 30, 2016, total operating revenue was $32.1 billion, compared to $30.3 billion for the same period in 2015. Operating income for the first half of the year was $1.2 billion, compared to $1.5 billion for the same period in 2015. Net non-operating income was $19 million in the first six months of this year, compared to $549 million in the same period last year. Year-to-date net income was $1.2 billion, compared to $2.1 billion for the same period in 2015.
Year-to-date capital spending was $1.28 billion through the second quarter of 2016, compared to $1.3 billion in the same period last year. KFHP/H’s capital spending reflects continued investments in facilities and technology to support care delivery. In the second quarter of the year, Kaiser Permanente opened four new medical office buildings. This brings the number of medical office buildings in the Kaiser Permanente system to 630, along with 38 hospitals. These investments in facilities are to ensure Kaiser Permanente can meet the needs of our growing membership and communities. Additional capital expenditures are going toward supporting technology to advance patient care both in person and virtually as well as our digital capabilities to provide patients even greater convenience and choice in accessing care and services.
Kaiser Permanente membership has grown by approximately 362,000 members since December 31, 2015, totaling approximately 10.6 million members as of June 30, 2016. “Kaiser Permanente’s membership and financial stability are important, as earnings are reinvested to support our care delivery system to improve patient outcomes and increase affordability,” saidKathy Lancaster, executive vice president and chief financial officer.
Consistent with their not-for-profit mission, KFHP/H also devote resources to improve the health of the communities they serve. KFHP/H’s community benefit investments provide care for low-income individuals and underserved communities, reinforce community-based health partnerships, support research and train health care workers. In the second quarter of 2016, KFHP/H continued to invest in a range of programs to serve the needs of local communities.
