The second quarter is proving to be difficult for health systems, and Kaiser is the latest to see investments suffer. Sutter Health, another California-based provider, also recorded a net loss for the period as a result of a decline in investment income.
In the period, compared to the previous year, the four main for-profit hospital operators struggled with poorer income and falling patient admissions.
In comparison to $23.7 billion in revenues and $23.3 billion in expenses during the same time last year, Kaiser reported total operating revenues of $23.5 billion and operating expenses of $23.4 billion.
In a statement, Kaiser Chief Financial Officer Kathy Lancaster said, “We continue to manage increased costs, supply chain problems, workforce constraints, and escalating demand for COVID-19 testing as we navigate through the continued uncertainty of the pandemic.”
Kaiser’s other income and cost line revealed a $1.4 billion quarterly loss, reflecting the company’s difficulties in the investment market. According to the system, other revenue and expenses were $2.6 billion during the same quarter last year.
According to Kaiser, the system’s continued commitment to planned investments in buildings, infrastructure, and technology was supported by capital spending in the most recent quarter, which came to $789 million, down from $864 million in the second quarter of the previous year.
In 2021, Kaiser reported record net profits of $8.1 billion, more than making up for a drop in operational income brought on by escalating COVID-19 costs.
