Due in part to strong investment performance, Oakland, California-based Kaiser Permanente reported a net income of $8.1 billion in 2021 compared to a net income of $6.4 billion the year prior.
The company reported that its operating income was $611 million, or 0.7% of operating revenues, versus $2.2 billion in 2020. Increased care delivery costs linked to COVID-19 surges added to the drop in operating income, Kaiser noted Feb. 11.
“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,” Executive Vice President and Chief Financial Officer Kathy Lancaster said in a statement.
Total operating revenues for 2021 were $93.1 billion compared to $88.7 billion in 2020. Kaiser's operating expenses totaled $92.5 billion compared to $86.5 billion in the previous year.
Robust financial markets in 2021 resulted in total other income and expenses of $7.5 billion compared to $4.1 billion in 2020.
“After almost two years, the COVID-19 pandemic continues to impact Kaiser Permanente just as it does our daily lives,” Chair and CEO Greg A. Adams added. “We rapidly rolled out vaccines, and now boosters, and administered more than 9 million COVID-19 tests while managing new and unpredictable variants like delta and omicron as they surfaced."