Kaiser Permanente reported second-quarter net income of $3.2 billion, a 55% increase over last year’s Q2 net income of $2 billion.
Kaiser Foundation Health Plan, Kaiser Foundation Hospitals, Risant Health, and their respective subsidiaries and affiliates on Friday reported consolidated operating revenues of $32.1 billion in Q2, compared to $29 billion for the same quarter in 2024.
Operating expenses of $31.1 billion in the second quarter of 2025 are greater than the $28 billion in operating expenses for Q2 2024.
Operating income was $1 billion this second quarter, compared to $908 million in the second quarter of 2024.
WHY THIS MATTERS
Operating income is strongest in the first half of the year due to the timing of the open enrollment cycle for Kaiser Permanente’s health plan, according to Kaiser.
Operating income is typically lower in the last half of the year as expenses tend to increase throughout the year, while revenue stays relatively flat, the health system said.
Favorable financial market conditions helped spur second-quarter financial growth.
However, Kaiser said it continued to experience high member utilization, care acuity and related care delivery costs in the second quarter as other hospitals and health systems. This was partially offset by management of discretionary spending and additional business function efficiencies.
“While we are pleased with our second-quarter performance, like others in the healthcare industry, Kaiser Permanente is navigating a shifting landscape marked by an aging population and evolving consumer expectations, as well as the recently enacted federal budget reconciliation bill, which will reduce healthcare coverage and funding as healthcare costs rise,” said chair and CEO Greg A. Adams. “To meet these challenges, we are focused on enhancing quality, service, and access, and redesigning our cost structure as we lead the shift toward value-based care that prioritizes affordability and improved patient outcomes.”
The reconciliation package, called the One Big Beautiful Bill, makes cuts to Medicaid of over $880 billion. It also mandates new stipulations for Medicaid coverage, such as work requirements and increased verification of eligibility.
THE LARGER TREND
Membership across Kaiser Permanente and Risant Health affiliates was more than 13.1 million as of June 30, 2025.
Capital spending was $1.1 billion in the second quarter, compared to $889 million in the second quarter of the prior year.
Kaiser is making ongoing investments in facilities and technology to support care and operations, it said.
ON THE RECORD
“In the second quarter, we continued to invest in our people, facilities, and technology to deliver the high-quality care and service that our members and patients expect,” said Executive Vice President and CFO Kathy Lancaster. “We are also leveraging innovation, strengthening performance, and accelerating efficiencies to drive affordability and prepare for the financial impact of the new federal budget bill.”
Email the writer: SMorse@himss.org