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Kaiser Permanente posts $961 million net loss in Q1 - Best Business Review Site 2024

Kaiser Permanente posts $961 million net loss in Q1

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Kaiser Permanente recorded a $961 million net loss in the first quarter as COVID-19 cases and labor expenses surged, the Oakland, California-based integrated health system announced Friday.

A 9.5% year-over-year increase in operating expenses and investment losses diluted Kaiser’s balance sheet. It reported $24.2 billion in operating revenues, which didn’t keep pace with its $24.3 billion of operating expenses. Kaiser had a $2 billion net income on $23.2 billion of operating revenue in the first quarter of 2021.

“While the ongoing effects of the pandemic strained our workforce, communities and operations, our operating model, which provides both care and coverage, enabled us to continue providing that care even in the face of an unprecedented omicron surge and industry-wide labor shortage,” Kaiser CEO Greg Adams said in a news release. “Our underlying operating performance remains solid and aligned with expectations.”

Kaiser added 88,000 members in the first quarter, 33,000 of which were Medicaid beneficiaries.

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