Kaiser and Risant revenue exceeds $115 billion

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Kaiser Foundation Health Plan & Hospitals reported revenue of $115.8 billion for 2024, a gain from the $100.5 billion reported in 2023.

For the first time, Kaiser’s financials include Risant Health, a nonprofit value-based organization created by Kaiser Foundation Hospitals in 2023. Geisinger Health was the first to join, followed by Cone Health.

Kaiser reported consolidated 2024 annual financial results on Friday. 

Operating income was $569 million for 2024 compared to $329 million in 2023. A total of $6.8 billion out of $12.9 billion in 2024 net income was related to Risant Health acquisitions. Kaiser net income in 2023 was $4.1 billion.

Operating expenses were $115.2 billion compared to $100.5 billion in the prior year. 

Investment returns in the financial markets contributed to other non-operating income and expenses of $5.5 billion in 2024, compared to other non-operating income and expenses of $3.8 billion in 2023.

Capital spending for owned and operated facilities totaled $3.7 billion, compared to $3.8 billion the prior year. 

WHY THIS MATTERS

Kaiser said it experienced the same financial pressures in 2024 as other health systems. Challenges included high prescription drug prices, the high cost of goods and services and increased care volumes, especially in ambulatory care settings. 

To offset these factors, the organizations improved operational efficiencies and streamlined business functions, Kaiser said.

Capital spending priorities in 2024 included preparing to meet California’s stringent seismic safety standards by 2030 and supporting investments in technology and environmentally sustainable facilities. 

THE LARGER TREND

Membership across Kaiser Permanente and Risant Health was more than 13 million as of December 31, 2024. As of December 31, 2024, Kaiser and Risant had 841 medical offices, 55 owned hospitals and 40 retail and employee clinics.

Risant Health closed on its acquisitions of Geisinger and Cone Health on March 31, 2024, and December 1, 2024, respectively. 

ON THE RECORD

“Our financial performance in 2024 showed a modest improvement in operating income and, like others, we saw gains in non-operating income driven by investment returns in the financial markets,” said Kaiser Permanente executive vice president and chief financial officer Kathy Lancaster. “This financial performance, along with carefully managing our resources and becoming more effective in our operations, allowed us to maintain investments in our capital and technology programs to drive affordability and enhance the consumer experience.”

Email the writer: SMorse@himss.org