Dive Brief:
Kaiser Permanente recorded just over $1 billion in operating income for the second quarter, up 13% from last year, according to an earnings report released Friday .
Although Kaiser CEO and Chair Greg Adams said he was “pleased” with the results, the nonprofit giant noted its operating income tends to be highest in the first half of the year, before flattening in the back half.
Expenses rose by almost $3 billion year over year in the second quarter. Kaiser said it’s feeling some pressure from higher-than-expected utilization in its health plan and heightened care costs related to high acuity cases, but that it was able to mostly offset costs by managing discretionary spending.
Dive Insight:
Kaiser owns more than 50 hospitals and employs roughly 280,000 total employees,