Oakland, Calif.-based Kaiser Permanente Kaiser Permanente is coming off a stronger financial year, but it’s also navigating major scrutiny and labor unrest.
In recent weeks, the health system reported improved operating results, agreed to a record Medicare Advantage fraud settlement and moved to resolve a prolonged nurses strike even as mental health workers weigh new job actions.
Financial performance
Kaiser recorded operating income of $1.4 billion (a 1.1% operating margin) in 2025, up from $569 million (a 0.5% margin) in 2024. Total operating revenue rose to $127.7 billion in 2025 from $115.8 billion in 2024, while operating expenses increased to $126.3 billion from $115.2 billion.
Kaiser’s results for the 12 months ended Dec. 31 include Risant Health, the Washington, D.C.-based nonprofit it formed to expand value-based care across diverse health system environments. Risant acquired Danville, Pa.-based Geisinger and Greensboro, N.C.-based Cone Health in 2024.
Record-breaking fraud settlement
Kaiser Permanente agreed to pay $556 million in what the Justice Department described as the largest Medicare Advantage fraud settlement to date. The settlement resolves allegations that Kaiser violated the False Claims Act by submitting unsupported diagnosis codes to Medicare Advantage to increase risk-adjustment payments in California and Colorado between 2009 and 2018.
Federal prosecutors alleged Kaiser used internal data-mining tools to identify diagnoses from patients’ histories that had not been submitted to CMS, then sent “queries” encouraging physicians to add those diagnoses through addenda—sometimes months or more than a year after the original visit. Court filings also alleged Kaiser added roughly 500,000 diagnoses, generating about $1 billion in improper Medicare Advantage payments.
Labor actions
Members of the United Nurses Associations of California/Union of Health Care Professionals are set to end their four-week, open-ended strike at Kaiser facilities in California and Hawaii on Feb. 24, after the union cited “significant movement” in bargaining. Kaiser said UNAC/UHCP leadership accepted its offer of 21.5% across-the-board wage increases, and the system is working to schedule returning employees in a way that protects patient safety and minimizes disruption.
Labor activity continues elsewhere. More than 3,000 UFCW-represented pharmacy and lab workers ended a separate three-day strike on Feb. 12, and about 2,400 NUHW-represented mental health professionals have authorized a one-day unfair labor practice strike that could occur in March. Kaiser said bargaining with UNAC/UHCP and other Alliance of Health Care Unions groups is continuing at local tables and it remains optimistic about reaching agreements.
New partnerships
Kaiser Permanente and Reno, Nev.-based Renown Health finalized a joint venture to launch a new outpatient care delivery system and co-own a health plan in northern Nevada. Hometown Health, previously owned by Renown, is now jointly owned by Kaiser Permanente, and additional health plan options are in development ahead of the fall 2026 open-enrollment period.
Kaiser also partnered with RAJ Sports, parent company of the Portland Thorns and Portland Fire, to expand medical care and wellness services for professional women athletes and strengthen community programming in Portland, Ore. Kaiser will provide medical services for players on both teams and serve as the integrated health partner for a new dual-sport performance center slated to open in early 2026.
Leadership changes
Mark Hayes was named senior vice president of government relations. He previously served as senior vice president of policy and advocacy at St. Louis-based Ascension.
Kaiser named Carrie Owen Plietz group senior vice president and COO of care delivery. In the newly created role, she will oversee hospital operations, pharmacy services, nursing, continuum of care, and consumer and patient experience across Kaiser markets.
Jim Marcotte was named vice president of mergers and acquisitions and partnership development strategy implementation. He previously served as executive director of financial planning and analysis at Kaiser.
