Kaiser Permanente and its subsidiaries wrapped 2025 with a 10.3% bump in operating revenues and more than $9.3 billion of total gains.
The integrated care organization said its health plan, hospitals, Risant Health subsidiary and other business under its umbrella combined for $127.7 billion in revenues. The prior year’s $115.8 billion—a particularly large year-to-year jump due to Risant’s acquisitions of Geisinger Health and Cone Health—had already extended Kaiser Permanente’s title as the country’s largest nonprofit health system.
The organization’s operating expenses also grew last year, though at a slower pace of 9.6%. This allowed Kaiser to expand its operating margin to $1.4 billion (1.1% operating margin), as opposed to 2024’s $569 million (0.5% operating margin).
“In 2025, we navigated another year of increasing complexity for health care organizations while continuing to make operational improvements to begin building back to necessary operating margins,” Greg Adams, chair and CEO of Kaiser Permanente, said in a release.
In a release announcing the top-line results, Kaiser said the expense increases stemmed from greater demand, more complex cases and costly prescription medications. It offset those “by advancing operational efficiencies and reducing outside medical expenses while continuing to provide high-quality care,” it said.
Net income for the organization reached $9.3 billion, buoyed by strengthened financial markets providing $7.9 billion of investment and other income. In 2024, Kaiser’s net income was $12.9 billion, though the bottom line that year was boosted by a $6.8 billion one-time gain from Risant’s Geisinger and Cone acquisitions.
Kaiser and the Risant health systems comprised 55 hospitals and 847 medical offices as of the end of the 2025 calendar year. Membership across the organization was nearly 13.1 million at the same cutoff, a slight drop from the third-quarter tally but still above Dec. 31, 2024.
Kaiser’s press release highlighted $5.3 billion of combined community benefit in 2025, up from $4.6 billion, with this year’s contributions including nearly $1.6 billion in financial assistance to 1.3 million low-income and underinsured patients.
Capital spending also rose from 2024’s $3.7 billion to 2025’s $4.8 billion, with the organization’s release pointing to earthquake safety updates for hospitals mandated by California plus facility and technology improvements.
“These enhancements support the evolving needs of our members, patients, and staff and help us continue delivering high-quality, affordable care and service,” Kathy Lancaster, vice president and chief financial officer, said of the spending. “In recent years, we have relied on our investment returns and the balance sheet to bridge the gap in our operating performance to support our capital needs without interruption and keep care affordable. Additionally, although our cash reserves are sufficient for daily operations, our days cash on hand is still below the industry average for organizations with similar creditworthiness.”
Kaiser released the summary of its results Feb. 6 and typically files a more fleshed-out accounting of its quarterly financials in subsequent weeks.
The announcement comes as the organization waits out a strike of more than 30,000 workers employed at its California and Hawaii sites. The union conducting the demonstration has often highlighted Kaiser’s multibillion-dollar net income and investment returns alongside its calls for greater workforce spending.
Kaiser also this past week closed its outpatient and insurance joint venture with Renown Health to expand into northern Nevada.