Kaiser Permanente recorded a $961 million internet loss within the first quarter as COVID-19 instances and labor bills surged, the Oakland, California-based built-in well being system introduced Friday.
A 9.5% year-over-year enhance in working bills coupled with funding losses diluted Kaiser’s steadiness sheet. It reported $24.2 billion in working revenues, which did not maintain tempo with its $24.3 billion in working bills. Kaiser had a $2 billion internet revenue on $23.2 billion of working income within the first quarter of 2021.
“Larger than anticipated COVID-19 prices, provide chain disruptions and employee shortages considerably drove up prices. That made for a difficult quarter for a lot of the healthcare sector, Tom Meier, Kaiser’s company treasurer, mentioned in an interview. “The continuing pressure of the pandemic and the rising variants heightened demand for COVID-19 care and testing as we continued to handle the backlog of deferred care.”
Kaiser handled greater than 688,000 COVID-19 sufferers throughout the quarter, marking the steepest enhance for the reason that begin of the pandemic. The group tallied $1.4 billion in associated bills.
Its nonoperating revenue fell from $1 billion within the first quarter of 2021 to a lack of $889 million in the latest quarter. Well being methods, which frequently depend on nonoperating revenue for capital expenditures and infrastructure enchancment, are anticipated to see a major decline in funding revenue this yr as rates of interest rise.
Kaiser’s capital spending remained regular at $872 million throughout the quarter, down barely from $906 million in the identical prior-year interval. The well being system not too long ago opened a 220,000-square-foot facility in Timonium, Maryland, that homes an ambulatory surgical procedure heart and 24-hour superior pressing care and pharmacy providers.
Kaiser added 88,000 members within the first quarter, 33,000 of which had been Medicaid beneficiaries.
