Kaiser Permanente’s Net Income Plummets, But Operating Revenue Is Up
The dip in operating income reflects the gap between costs, which jumped 2.9 percent in first quarter, and premium rates. Kaiser appears to be fine with smaller margins and strong membership growth.
The San Francisco Business Times:
Kaiser Permanente: First Quarter Profits Down, But Revenue And Enrollment Up
Kaiser Permanente's Q1 net income fell just over 50 percent, from $1 billion in 2015 to $504 million this year, even as operating revenue climbed nearly 9 percent. The pressure on profits continued a recent trend at the giant Oakland-based nonprofit, fueled largely by weaker results on Wall Street and other fiscal factors, such as the fact that Kaiser's accounting policy doesn't recognize "unrealized" or paper gains on investments. (Rauber, 5/7)