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Financial results

For the quarter ending March 31, 2024, Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, and their respective consolidated subsidiaries and affiliates (KFHP/H) reported operating revenues of $27.4 billion and operating expenses of $26.5 billion compared to operating revenues of $25.2 billion and operating expenses of $25.0 billion in the same period of the prior year. Operating income was $935 million for the first quarter of 2024 compared to operating income of $233 million in the first quarter of 2023.

KFHP/H operating income in the first quarter of 2024 was below historical first-quarter trends leading up to the pandemic. Continuing cost pressures familiar to the entire health sector in the first quarter included high utilization, care acuity, and the high costs of goods and services.

Other income (net of other expense), excluding a one-time gain related to the Risant Health Inc. (Risant Health) acquisition of Geisinger Health (Geisinger), totaled $1.8 billion for the first quarter, driven by favorable financial market conditions. Other income (net of other expense) was $975 million in the first quarter of 2023.

“At Kaiser Permanente, we continue to manage through the challenges that face health care to provide a high-quality and affordable health care experience to our nearly 12.6 million members,” said chair and chief executive officer Greg A. Adams. “I am thankful to our dedicated employees and physicians for their continued efforts, which allowed us to improve first-quarter performance compared to a year ago. Together, we are leading a national effort to make quality care more equitable and affordable for all.”

Historically, the first-quarter operating margin is strongest for KFHP/H due to the timing of the open enrollment cycle, followed by lower operating margins in the 3 subsequent quarters as expenses increase throughout the year while revenue stays relatively flat.


Kaiser Permanente membership as of March 31, 2024, was nearly 12.6 million, reflecting growth of almost 66,000 members since December 31, 2023.

Capital spending

Capital spending in the first quarter was $808 million compared to $930 million in the same period of the prior year.

On February 6, 2024, Kaiser Permanente opened the Watts Medical Offices in Southern California, expanding the almost 60-year legacy of the Kaiser Permanente Watts Counseling and Learning Center. The new facility brings high-quality primary and specialty care services to members who live and work in the South Los Angeles area.

“In the first quarter, we executed on our strategy of ensuring we have the right resources and capabilities to meet the evolving needs of our members while driving affordability,” said executive vice president and chief financial officer Kathy Lancaster. “Our financial performance and our integrated care and coverage model provide a stable foundation to remain resilient as health care continues to face headwinds.”

Risant Health and Geisinger

Risant Health, created by Kaiser Foundation Hospitals (KFH) in 2023, is a not-for-profit organization with a vision to improve the health of millions of people by increasing access to value-based care and coverage. Risant Health operates separately and distinctly from Kaiser Permanente’s core integrated care and coverage model while building upon Kaiser Permanente’s 80 years of expertise in value-based care. Health systems that become part of Risant Health continue to operate independently as regional or community-based health systems serving and meeting the needs of their communities, providers, and health plans while gaining expertise, resources, and support through Risant Health’s value-based platform.

The KFHP/H enterprise includes integrated care and coverage under the Kaiser Permanente brand, the KP Medical Foundation, and Risant Health and its subsidiaries.

Geisinger, an integrated health system serving 1.2 million people and headquartered in Danville, Pennsylvania, was acquired by Risant Health on March 31, 2024, and as a result, starting on the acquisition date, Geisinger’s financial statements are consolidated with KFH financial statements. Under generally accepted accounting principles, the resulting $4.6 billion increase in KFH’s consolidated unrestricted net assets is reported as a one-time nonoperating gain for the KFHP/H enterprise in the first quarter.

Q1 2024 and Q1 2023 financial summary for KFHP/H enterprise

$ in millions, except % Q1 2024 Q1 2023
Operating revenues $27,402 $25,224
Operating expenses $26,467 $24,991
Operating income $935  $233
Operating margin 3.4% 0.9%
Other income and expense (excluding Geisinger acquisition) $1,811 $975
Nonoperating, one-time gain of net assets from Geisinger acquisition $4,617 N/A
Net income $7,363* $1,208
Capital spending $808 $930

*Net income not including the Geisinger acquisition was $2,746

Note: Certain statements included in this document may constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used, such as “plan,” “project,” “forecast,” “expect,” “estimate,” “budget,” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements described to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Accordingly, actual results will vary and the variations may be material. None of the KFHP/H organizations plan to issue any updates or revisions to those forward-looking statements if or when expectations change, or events, conditions, or circumstances on which such statements are based occur.


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