Kaiser Permanente wrapped up its fiscal year with $329 million of operating income (0.3% operating income), net income of $4.1 billion and more than $100 billion in both operating revenues and expenses, the Oakland, California-based nonprofit announced Feb. 9.

The rebound performance follows sizable losses during 2022, when the system logged a $1.3 billion operating loss (-1.3% operating income) off of $95.4 billion in operating revenues and $96.7 billion in operating expenses. It had also weathered a net loss of $4.5 billion due to a $3.2 billion loss across “other income,” which largely reflected down investments.

“I want to thank the people of Kaiser Permanente for their hard work in 2023 to provide members and patients with a positive experience at all touch points while also embracing new ways to drive efficiencies, improve access, and advance health outcomes,” said Chair and CEO Greg A. Adams said in a press release sharing the year’s top-line financial results. “Together, we navigated another challenging year and are on a path to deliver on our mission and bring our distinct brand of value-based care to more people.”

For the fiscal year ended Dec. 31, 2023, the integrated provider-payer landed $100.8 billion in operating revenues and $100.5 billion in operating expenses. In regard to the latter, Kaiser Permanente’s release cited higher costs for goods and services, prescription drug prices, labor challenges and care costs tied to higher volumes from respiratory infections as well as pandemic deferrals.

“Kaiser Permanente met these challenges by reducing administrative costs and pursuing efficiencies while expanding access to its high-quality care,” the system wrote in the release that also touted over 22 million virtual visits and other tech-supported care delivery efficiencies.

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