Kaiser Permanente reports a net loss of $961 million in the first quarter

Kaiser Permanente recorded a net loss of $961 million in the first quarter due to a sharp rise in COVID-19 cases and labor costs, the Oakland, California-based combined health care system said Friday.

A 9.5% year-over-year increase in operating expenses and investment losses eroded Kaiser’s balance sheet. The company reported operating income of $24.2 billion, which fell short of its operating expenses of $24.3 billion. Kaiser posted a net income of $2 billion on operating revenue of $23.2 billion in the first quarter of 2021.

“While the ongoing effects of the pandemic have strained our workforce, communities, and operations, our operating model, which provides both care and coverage, has allowed us to continue providing this care even in the face of an unprecedented surge in omicrons and an industry-wide workforce shortage. Kaiser CEO Greg Adams said in a press release. “Our underlying operating numbers remain strong and in line with expectations.”

Kaiser added 88,000 members in the first quarter, 33,000 of which were Medicaid beneficiaries.