Buoyed by strong investment gains, Oakland, Calif.-based Kaiser Permanente posted net income of $8.1 billion in 2021, an increase of $1.7 billion from 2020, according to its financial results published on February 11. However, its operating profit fell sharply.
For the 12 months ended Dec. 31, the integrated healthcare provider with 39 hospitals reported operating income of $93.1 billion, up from $88.7 billion a year ago. Additionally, Kaiser saw spending rise 6.9% to $92.5 billion in 2021.
In 2021, Kaiser saw its operating profit drop to $611 million, or an operating margin of 0.7%. That compares to an operating profit of $2.2 billion in 2020 and an operating margin of 2.5%.
Kaiser attributed the sharp drop in operating profit to an increase in caregiving spending due to COVID-19 surges.
Total other income and expenses, which includes investment income, reached $7.5 billion in 2021. In 2020, Kaiser recorded a gain of $4.1 billion.
“Our financial performance underscores the strength of our integrated model, which allows us to weather unexpected challenges such as the COVID-19 pandemic while continuing to serve our members,” said Kathy Lancaster, executive vice president and chief financial officer of Kaiser Permanente.
In 2021, Kaiser also said his health plan membership grew by 185,000 members. It now has more than 12.5 million members.
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