Kaiser Permanente and its subsidiaries posted a $218 million operating income, or a 0.7% operating margin, for the third quarter of 2025, the country’s largest nonprofit health system shared Friday in a release.
The integrated care organization painted its operating performance as below average for nonprofit healthcare entities. Still, the tally is still well ahead of its $608 million operating loss (-2.1% operating margin) from the third quarter of 2024, when higher-than-expected utilization, pharmacy costs and other factors triggered a push to reduce spending.
Kaiser also benefited from a strong financial market conditions that fueled a $2.4 billion nonoperating income for the quarter. This gave the organization a bottom line net income of $2.6 billion, again much stronger than the prior year’s $845 million.
Consolidated operating revenues for the quarter hit $31.8 billion, up about 99.7% year over year, while operating expenses hit $31.6 billion, a roughly 6.8% increase. Membership across Kaiser and its Risant Health affiliates was more than 13.1 million as of Sept. 30, roughly the same as when it closed its second quarter June 30.
Kaiser also noted an uptick in capital spending during the quarter—$1.3 billion, as opposed to the $922 million of the third quarter of 2024—for which the organization alluded to facility maintenance and technology investments.
The organization announced the top-line numbers in a release and has not yet filed its more detailed account of the quarter’s performance. Statements from executives included in the release drew attention to immediate expense pressures and the broader challenges of an aging population, heightened expectations from consumers and coverage reductions to come under the One Big Beautiful Bill Act.
“Like others in healthcare, we face inflation, rising care acuity, high pharmaceutical costs, and increasing labor expenses, all of which continue to narrow our operating margin,” Executive Vice President and Chief Financial Officer Kathy Lancaster said. “Despite these headwinds, we continue to drive affordability for our members while maintaining quality and improving access and the member experience.”
Kaiser is the country’s largest health system by total operating revenue, which, in 2024, hit nearly $115.8 billion thanks in no small part to the premiums it collects as a membership-based integrated system. With the recent acquisitions of Risant Health, the organization includes more than 50 hospitals and about 280,000 total employees.
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