OAKLAND, Calif. — Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, Risant Health, Inc., and their respective subsidiaries and affiliates (KFHP/H & Risant Health) reported consolidated 2024 annual financial results that reflect the organizations’ commitment to a mission of providing high-quality, affordable care and services while continuing to advance value-based care models that improve the health of more people.
For the first time and going forward, KFHP/H’s year-end financial results — as well as annual membership numbers and facility counts — include Risant Health, a not-for-profit organization created by Kaiser Foundation Hospitals.
KFHP/H & Risant Health combined operating revenues for 2024 were $115.8 billion compared to $100.8 billion in 2023. Operating expenses were $115.2 billion compared to $100.5 billion in the prior year. Operating income was $569 million for 2024 compared to operating income of $329 million in 2023.
Like others in the health care sector, KFHP/H and Risant Health experienced significant financial pressures in 2024 such as high prescription drug prices, high costs 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.
Investment returns in the financial markets contributed to other nonoperating income and expense of $5.5 billion in 2024, compared to other nonoperating income and expense of $3.8 billion in 2023.
Risant Health closed on its acquisitions of Geisinger and Cone Health on March 31, 2024, and December 1, 2024, respectively. Standard accounting rules require KFHP/H & Risant Health to report the net value of unrestricted assets of the organizations that become part of Risant Health as one-time net income on its financial statements. A total of $6.8 billion out of $12.9 billion in 2024 KFHP/H & Risant Health net income was related to Risant Health acquisitions. KFHP/H net income in 2023 was $4.1 billion.
“In 2024, we honored our 80-year legacy by advancing our strategy to bring value-based care to more people across the country through Risant Health affiliates Geisinger and Cone Health. At the same time, Kaiser Permanente kept its commitment to continuously improve quality, service, and access amid increasing demand for care by providing 2.5 million more patient visits than the prior year,” said Kaiser Permanente chair and chief executive officer Greg A. Adams. “I am proud of how our people have risen to the occasion time and again to respond to a changing health care environment while delivering the care and service our members, patients, and communities need.”
Membership
Membership across Kaiser Permanente and Risant Health affiliates was more than 13.0 million as of December 31, 2024.
Improving community health
In 2024, KFHP/H & Risant Health supported a wide range of community health programs with an investment of $4.6 billion, compared to an investment of $3.1 billion the year prior. Funded programs advanced the health of more than 5.3 million low-income patients by supporting clinical, financial, and operational capacities of community health centers. An investment was made in the expansion of medical respite care delivery by funding 15 medical respite providers in 4 states in 2024. The Medical Financial Assistance program provided over 1.0 million low-income and uninsured patients more than $1.4 billion in assistance to cover part or all of their medical expenses. A Food Is Medicine Center of Excellence launched with multiple evidence-based nutrition programs to improve access to healthy foods for members and communities.
Capital spending
Capital spending priorities in 2024 included preparing to meet California’s stringent seismic safety standards by 2030 and supporting investments in leading-edge technologies and environmentally sustainable facilities. Capital spending for owned and operated facilities totaled $3.7 billion, compared to $3.8 billion the prior year. As of December 31, 2024, KFHP/H & Risant Health had 841 medical offices, 55 owned hospitals, and 40 retail and employee clinics.
“Our financial performance in 2024 showed a modest improvement in operating income and, like others, we saw gains in nonoperating 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.”
