The health system and health plan giant saw its bottom line flip in the third quarter compared to the previous year.
Kaiser Permanente experienced a difficult third quarter which included a net loss of $1.54 billion, the company announced.
The operator of hospitals, health plans, and other subsidiaries released its earnings report, revealing a significant fall to the opposite end of the spectrum from last year's third quarter profit of $1.56 billion.
Most of the decline was due to other income and expense totaling a loss of $1.5 billion for the quarter, which the company said was driven by investment market conditions. The operating loss, meanwhile, was $75 million.
Despite the downturn, organization leadership expressed encouragement about the maneuvering through the current financial climate.
"I am proud of our ability to navigate the challenges of the past few years including a global economic crisis, the high cost of goods and services, supply chain issues, labor shortages, and the pandemic while serving our 12.6 million members," Kaiser Permanente chair and CEO Greg A. Adams said in a statement.
"I continue to be inspired by the unwavering commitment and dedication of our Kaiser Permanente teams who through this unprecedented and unpredictable 3-year period continue to provide high-quality, affordable care and service to our members and communities."
The company's membership has experienced modest growth of nearly 40,000 during the calendar year, with the total sitting at 12.6 million at the end of the third quarter.
Kaiser Permanente continues to pour into capital spending, which totaled $820 million for the quarter, compared to $878 million for the third quarter in 2021. Year to date, the company has capital spending of $2.5 billion.
"Kaiser Permanente's integrated model of care and coverage continues to provide long-term stability amid changing market conditions," stated Kathy Lancaster, Kaiser Permanente executive vice president and CFO. "In the third quarter of 2022, we remained committed to our members, patients, and the communities we serve while controlling spending and investing in our capital program."
Jay Asser is an associate editor for HealthLeaders.