Integrated healthcare organisation Kaiser Permanente has registered a net income of $4.1bn for 2023 against a net loss of $4.5bn for 2022, attributed to the fluctuations in the financial markets.
Operating income for the year stood at $329m, contrast to the operating loss of $1.3bn in 2022.
Kaiser Permanente’s operating revenues rose to $100.8bn for 2023, up from $95.4bn in the previous year.
Operating expenses also increased to $100.5bn from $96.7bn.
The operating margin for 2023 was recorded at 0.3%, compared to a loss of 1.3% in the previous year.
In 2023, increased costs of goods and services, prescription drug prices, high deferred care volumes, continued flu, Covid-19 and respiratory syncytial virus (RSV) services, alongside the costs associated with the labour environment were the primary expense drivers for the healthcare sector, the organisation noted.
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Membership numbers showed a slight decline, with Kaiser Permanente having more than 12.5 million members as of 31 December 2023, which is a decrease of nearly 51,000 members over the prior year.
This decline was attributed to the reducing pace of job growth and various other economic factors.
Despite these challenges, Kaiser Permanente made strides in reducing administrative expenditures and pursuing efficiencies, all while boosting access to its superior care.
The organisation also continued its commitment to community health programmes in 2023 with an investment of $3.1bn, up from $2.8bn in the previous year.
Capital spending by Kaiser Permanente totalled $3.8bn, an increase from $3.5bn in the previous year.
Kaiser Permanente executive vice-president and chief financial officer Kathy Lancaster said: “Kaiser Permanente remains committed to providing affordable care and coverage for our members as we continue to mitigate increased costs in this evolving health care environment.
“By fulfilling our mission, eliminating inefficiencies, and investing in technology, facilities, and our communities, we are on a financially sustainable path.”