The Oakland-based healthcare organization also saw its expenses rise alongside its revenues in 2019.
Kaiser Permanente posted total operating revenues of $84.5 billion in 2019, according to its annual financial report released Friday.
The Oakland-based nonprofit healthcare organization's operating revenues rose almost $5 billion year-over-year, though the company saw its expenses rise alongside its revenues.
Operating expenses jumped $4 billion year-over-year, up to $81.8 billion for the full year.
Additionally, Kaiser Permanente's operating income was $2.7 billion and rose as a percentage of operating revenues by 0.8%. The payer-provider's net income topped $7.4 billion in 2019, up nearly $5 billion compared to 2018.
These were the first financials released by Kaiser Permanente since Greg Adams was named chief executive officer (CEO) in mid-December following the sudden death of longtime CEO Bernard Tyson in late November.
"Our solid 2019 operating performance and strong investment returns position Kaiser Permanente to continue delivering on our deep and long-standing commitment to provide high-quality, affordable health care and coverage," Greg Adams, CEO of Kaiser Permanente, said in a statement. "For example, in 2020, we have decreased out-of-pocket costs and improved benefits for many of our Medicare Advantage members, kept individual and family plan rate increases on average at or below the expected rate of inflation, and increased our medical financial assistance."
Perhaps the most significant boon for Kaiser Permanente's bottom line was its investment portfolio, which returned $4.7 billion to the company in 2019, up from $600 million in 2018. The company's capital spending rose slightly year-over-year at $3.5 billion.
Kaiser Permanente added 81,000 members by the end of 2019, with a total membership of 12.2 million.
The company also expanded its available locations in 2019, opening 17 new medical offices. In total, the system owns 712 medical facilities and 39 hospitals, in addition to 50 retail health clinics.
Despite the positive financial metrics last year, Kaiser Permanente contended with labor strife throughout 2019.
First, Kaiser Permanente workers in California voted to ratify a four-year contract with the health system through September 2023.
Subsequently, the payer-provider faced a five-day strike from mental health workers at more than 100 facilities across California.
The strike was originally supposed to take place in late November but was postponed following the unexpected passing of Tyson.
In mid-January, Kaiser Permanente and Blue Cross of California announced a combined $45 million contribution to Governor Gavin Newsom's fund to eradicate homelessness.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
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