Kaiser Permanente kicked off 2021 on a excessive notice, having drawn $2 billion in revenue within the first quarter.
Oakland, Calif.-based Kaiser’s sturdy web revenue within the quarter ended March 31 was a big swing from its $1.1 billion web loss within the prior-year interval, in keeping with outcomes launched Friday. However the not-for-profit system famous $2 billion continues to be down about 60% from its web revenue of $3.2 billion within the first quarter of 2019, a few yr earlier than the COVID-19 pandemic struck.
Tom Meier, Kaiser’s company treasurer, informed Fashionable Healthcare the system has benefited from a “fairly important” year-over-year constructive swing in funding revenue.
“We’re completely satisfied to see the monetary markets have stabilized just a little bit from the volatility we had a yr in the past,” he stated. “We’re happy with our outcomes.”
However regardless of the stronger revenue, Kaiser’s working margin was barely decrease within the first quarter of 2021 at 4.4%, in contrast with 5.5% within the first quarter of 2020. Kaiser generated $1 billion in working revenue within the quarter, in contrast with $1.3 billion within the prior-year interval.
The built-in well being system’s income grew 2.6% year-over-year, from $22.6 billion to $23.2 billion within the just lately ended quarter. Bills totaled $22.2 billion, 3.8% increased than within the prior-year interval.
Meier stated that is as a result of Kaiser continues to shoulder increased bills associated to the pandemic. The system handled nearly 275,000 COVID-19 sufferers, carried out greater than 2 million COVID diagnostic assessments and administered greater than 3.4 million vaccine doses to members and non-members throughout the first quarter.
“These are all prices that we did not have a yr in the past,” he stated.
Membership totaled about 12.5 million as of March 31, an uptick of greater than 129,000 for the reason that finish of 2020. Meier stated pandemic-related job losses proceed to push members from employer-sponsored industrial plans to government-sponsored and particular person plans.
Kaiser’s capital spending declined barely to $906 million within the quarter, in contrast with $912 million within the first quarter of 2020.
Kathy Lancaster, Kaiser’s chief monetary officer, stated in a press release that all through the pandemic, Kaiser’s distinctive mannequin enabled the system to switch members from industrial and employer-sponsored plans to particular person or government-sponsored plans.
“This meant members may hold their care supplier and protection, regardless of monetary hardship or lack of employer-sponsored well being protection.”
Kaiser just lately agreed to pay $18.9 million to settle two class-action lawsuits alleging it underpaid and underpromoted Black and Latino staff. The system has pledged to create applications to make sure truthful and equitable pay and profession development for its staff.