Kaiser Permanente continues to lead the way in transforming the future of health and health care, and 2016 was a strong year despite unprecedented changes in the health care industry. We provided high-quality, affordable, accessible health care to nearly 11 million Kaiser Permanente members last year while also reinforcing our commitment to support the health of the communities we serve.
We experienced steady financial performance, ending the year with nearly $65 billion in operating revenue. Our 2016 membership of 10.7 million members reflected growth across all lines of business. In addition, our capital spending of $2.8 billion reflected the importance of our investments in both technology and facilities to improve our member care and service. Kaiser Permanente opened a new information technology campus in Atlanta — creating an estimated 900 new IT jobs by 2019 — and completed two new dental offices in Oregon and 12 new medical offices nationwide.
Kaiser Permanente is known for the exceptional care provided by our Permanente Medical Group physicians and the personalized, coordinated approach of our skilled care teams. This past year, we continued to advance patient care through innovation and technology. Telehealth has made it more convenient for members to access our care and services, with more than half of the visits with our members completed “virtually” through email, phone and video. We are placing our members and patients at the center of all we do, providing them with choice in accessing the best Kaiser Permanente has to offer.
We had the honor of caring for many new members who had access to health care coverage for the first time in their lives through the state exchanges, and our dedicated physicians and care teams delivered life-saving medical care to many of these new members immediately after they joined Kaiser Permanente. This experience emphasizes the importance of preventive health in our communities, which is why our mission to provide accessible, affordable care is so vital.
We received recognition in 2016 for the quality of care we delivered to our members. Kaiser Permanente health plans were classified as among the best in the nation for consumer experience, prevention and treatment, according to the National Committee for Quality Assurance. In addition, all Kaiser Permanente health plans were again rated highest (or tied for highest) in both Medicare and commercial in the areas we serve. In 2016, 28 Kaiser Permanente hospitals were listed as “high performing” for one or more measures of common or complex care in U.S. News & World Report’s annual report. Five of Kaiser Permanente’s seven Medicare health plans received an overall rating of 5 stars — the highest rating — from the Centers for Medicare & Medicaid Services for 2016.
Helping our communities achieve total health remains an essential part of our mission, and Kaiser Permanente gave back $2.5 billion to provide care for low-income families, support community-based health partnerships, steward environmental initiatives, and conduct and share important medical research. In addition, Kaiser Permanente welcomed its first chief community health officer in 2016. This critical role brings even greater focus to our commitment of more than 70 years to address broad social issues that impact both personal and community health. In addition, we named a national leader of mental health and wellness, and initiated important work and conversations on mental health conditions and access to services. This included the launch of our “Find Your Words” campaign as well as national advertising calling attention to depression in young people.
These are only a few highlights of the progress we made in 2016. We invite you to read more about Kaiser Permanente’s performance and commitments in this year’s annual report. Thanks to our dedicated employees and our Permanente Medical Group physicians, we are transforming health care and coverage to achieve better health for all.
Bernard J. Tyson
Chairman and CEO
Kaiser Foundation Health Plan, Inc.
Kaiser Foundation Hospitals
Geoffrey S. Sewell, MD, FACP
Chair, National Permanente Executive Committee
The Permanente Federation, LLC
President and Executive Medical Director
Hawaii Permanente Medical Group
Our approach to care puts the patient at the center of all we do and emphasizes prevention and total health.
Kaiser Permanente’s integrated health care system and commitment to high-quality care empower our members to maximize their total heath by providing excellent medical care for you when you are sick — but also providing preventive care to keep you well.
Our expert doctors, nurses and caregivers are united by a culture of teamwork and assisted by leading-edge technology, allowing us to provide care that’s evidence-based, safe, timely, effective, efficient and equitable, and to provide an experience that is patient-centered and convenient for our members. The results are evident in our consistently high marks for member satisfaction and clinical quality.
Our philosophy and structure are aligned, enabling our physicians, nurses and other caregivers to work collaboratively and create a culture of healing. We inspire good health and provide high-quality and personalized care that helps members get and stay healthy.
Collaboration and coordination between mental health and primary medical care leads to better outcomes for patients.
A 10-year study of more than 1.3 million Kaiser Permanente members uncovered that blacks, Latinos and Asians without any prior history had lower risk of heart disease compared with whites.
How Safe Med LA, a public/private prescription drug-abuse coalition in Los Angeles County is working with Kaiser Permanente to address the opioid-abuse epidemic.
We’re leading the way in minimally invasive surgery for gynecologic cancers.
A study published in The Permanente Journal shows how online video access to neurological specialists increases the use of a life-saving treatment for stroke patients by 73 percent.
Kaiser Permanente was among the 18 health systems to participate in a nationwide initiative called COMPASS: Care of Mental, Physical and Substance-use Syndromes.
Kaiser Permanente’s focus on wellness and prevention, our integrated system that allows doctors and nurses to work together to help keep patients healthy, and our commitment to total health makes us a national health care leader.
We believe that total health is more than freedom from physical affliction — it’s about mind, body and spirit. We also believe that life, liberty and the pursuit of happiness require total health, and that includes equal access to high-quality health care for all. We serve the diverse care needs of our members by providing a preventive, coordinated and personalized approach to managing their health. Expanding access to our unique model of care and coverage together leads more Americans to total health.
Our 2016 advertising campaign highlighted our ongoing commitment to reducing health disparities through disease prevention, detection and treatment.
Our coordinated approach to maternity care helps keep our members healthy with safe, personalized care.
With a focus on positive lifestyle choices, our “Powered by Health” social media campaign and our NBA and Golden State Warriors partnerships are resonating with younger adults.
Palliative care is about treating the whole patient, and we have made great strides to advance care planning and provide the right support.
Members get timely health care information and services while away from home thanks to a new 24-hour travel line.
Making our coordinated and connected approach to care accessible to more Americans through our expansion into the state of Washington.
Our free screenings, educational resources and prevention tips are just a few examples of how we deliver on our commitment to total health.
We believe great health care should be consumer-centric, personalized and enabled by modern technology.
Since our founding, innovation has been part of our DNA and our drive to shape the future of health care. We are a unique, integrated health care organization that combines the full spectrum of high-quality care with comprehensive coverage. In addition, we were an early adopter of electronic health records, and now operate one of the industry’s largest private electronic health record system, which is the fully integrated backbone of our delivery system and consumer digital services.
We are continuously finding new and better ways for our medical teams to collaborate, for our facilities to improve how patients experience care, and for technology to improve the quality and access to care.
Consumers should not have to leave the ease and convenience of their 21st-century world to receive quality health care, especially when we offer so many ways for our members to engage with Kaiser Permanente digitally, nearly any time and from anywhere.
These examples highlight several of our recent innovations and illustrate the many ways we use technology to improve our care and service and to help our members live healthier lives.
Video visits, with which members and clinicians can “see” each other, are a powerful tool for timely, convenient access and quality care.
We imagine the future of health care delivery and how emerging technologies will color a world of member experiences.
Our new Signal Hill Medical Office Building illustrates how we are evolving our care model and space design to better integrate into members’ lives.
Our new San Diego Medical Center is one of the most environmentally and technologically advanced hospitals in the nation.
Kaiser Permanente’s 2016 Vohs and Lawrence Awards recognize innovation in enhancing quality and patient safety.
Thriving, healthy communities support thriving, healthy individuals. The two go hand in hand.
At Kaiser Permanente, we help our members thrive by working at the individual level within our integrated care delivery system — but we also create great impacts across large populations when we engage with communities and governments at the policy, system and environmental levels.
Building on our deep history of working in communities to improve conditions for better health, we are setting our strategy for the next evolution of community health — a system that improves the total health of individuals and communities in mutually reinforcing ways.
Healthy Eating Active Living (HEAL) Cities Campaign supports city leaders’ efforts to improve their cities’ nutrition and physical activity environments.
Kaiser Permanente adapted design and construction of the Baldwin Hills-Crenshaw medical facility in Los Angeles to address top community needs: neighborhood revitalization and employment.
How we purchase, our standards for facilities, and the effects of our business and operating practices — we believe these have an impact on community health.
Multimillion-dollar “Housing Is Health” grant helps address homelessness in the Portland area.
Our work in schools is focused on four key areas: healthy eating, active living, student and employee wellness, and social and emotional wellness. Learn why 16 Southern California Schools have been named the healthiest schools in America.
Kaiser Permanente Community Benefit and the Kaiser Permanente Labor Management Partnership launched the School Employee Wellness Grant Program in partnership with the Teachers Association of Baltimore County.
Our safety net specialty care programs allow primary care providers from the health care safety net to electronically request specialty care advice through e-consults for their uninsured adult patients.
Achieving our mission of high-quality, affordable health care is made possible through the individual and collective efforts of the people of Kaiser Permanente.
Every day, the compassionate, skilled caregivers and professionals that make up our 213,000-person workforce focus on one overarching goal: optimizing the health and well-being of our patients, members and the communities we serve.
Working individually and as teams, supported by innovative technology and research, the people of Kaiser Permanente are committed to making advances in preventive, routine and specialty care that enhance and prolong the lives of those we have the privilege to care for.
We are proud to be a great place to receive and deliver care and to be recognized as a top employer — helping our workforce thrive and succeed in a workplace where collaboration and innovation, growth and development, and diversity and inclusion are supported and embraced.
Kaiser Permanente intensive care unit teams work together to greatly reduce hospital-acquired infections.
Our highly skilled and experienced nursing professionals combine compassionate caregiving and clinical expertise in providing care to our members and patients.
Kaiser Permanente’s top doctors are more than a group of skilled physicians — they are innovators, educators and leaders in their field.
Our employees take great pride in giving back to the communities in which they live and work by volunteering with food banks, youth organizations, shelters, environmental clean up and more.
Behind every number are lives made better.
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Hosted farmers markets 
Kaiser Permanente is committed to helping shape the future of health care. We are recognized as one of America’s leading health care providers and not-for-profit health plans. Founded in 1945, Kaiser Permanente has a mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. As of December 31, 2016, we had 10.7 million members in eight states and the District of Columbia. Care for members and patients is focused on their total health and guided by their personal Permanente Medical Group physicians, specialists and team of caregivers. Our expert and caring medical teams are empowered and supported by industry-leading technology advances and tools for health promotion, disease prevention, state-of-the-art care delivery and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education and the support of community health. For more information, go to kp.org/share.
(as of December 31, 2016)
Our board of directors as of December 31, 2016. See our current board
Bernard J. Tyson
Chairman and Chief Executive Officer
Ramón Baez
Regina Benjamin, MD, MBA
Jeff Epstein
Leslie Stone Heisz
David F. Hoffmeister
Judith A. Johansen, JD
Kim J. Kaiser
Philip A. Marineau
Edward Pei
Margaret E. Porfido, JD
Richard P. Shannon, MD
Cynthia A. Telles, PhD
A. Eugene Washington, MD, MPH
Our national leaders as of December 31, 2016. See our current national leaders
Bernard J. Tyson
Chairman, President and Chief Executive Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Gregory A. Adams
Executive Vice President and Group President, Kaiser Foundation Health Plan, Inc. and Hospitals
Anthony Barrueta
Senior Vice President, Government Relations, Kaiser Foundation Health Plan, Inc. and Hospitals
Vanessa M. Benavides
Senior Vice President and Chief Compliance and Privacy Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Bechara Choucair, MD
Senior Vice President, Community Health and Benefit, Chief Community Health Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Chuck Columbus
Senior Vice President, Chief Human Resources Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Patrick T. Courneya, MD
Executive Vice President, National Health Plan and Hospital Quality; Chief Medical Officer, Medicare Advantage, Cost and Prescription Drug Plans, Kaiser Foundation Health Plan, Inc. and Hospitals
Richard (Dick) D. Daniels
Executive Vice President, Chief Information Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Kathy Lancaster
Executive Vice President, Chief Financial Officer, Kaiser Foundation Health Plan, Inc. and Hospitals
Arthur M. Southam, MD
Executive Vice President, Health Plan Operations, Kaiser Foundation Health Plan, Inc. and Hospitals
Mark S. Zemelman
Senior Vice President, General Counsel, Kaiser Foundation Health Plan, Inc. and Hospitals
Edward M. Ellison, MD
Executive Medical Director/Chairman of the Board, Southern California Permanente Medical Group; Chairman of the Board and CEO, The Southeast Permanente Medical Group, Inc.; Co-CEO, The Permanente Federation LLC
Robert M. Pearl, MD
Executive Director and CEO, The Permanente Medical Group, Inc.; President and CEO, Mid-Atlantic Permanente Medical Group, P.C.; Co-CEO, The Permanente Federation LLC
Geoffrey S. Sewell, MD, FACP
President and Executive Medical Director, Hawaii Permanente Medical Group, Inc.; Chairman, National Permanente Executive Committee, The Permanente Federation LLC
Chris Grant
Executive Vice President and Chief Operating Officer, The Permanente Federation LLC
Mary Ann Barnes, RN
President, Kaiser Foundation Health Plan, Inc. and Hospitals, Hawaii
Roland Lyon
President, Kaiser Foundation Health Plan of Colorado
Julie Miller-Phipps
President, Kaiser Foundation Health Plan, Inc. and Hospitals, Southern California
Janet A. Liang
President, Kaiser Foundation Health Plan, Inc. and Hospitals, Northern California
Jim Simpson
Interim President, Kaiser Foundation Health Plan of Georgia, Inc.
Kim Horn
President, Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc.
Andrew McCulloch
President, Kaiser Foundation Health Plan and Hospitals of the Northwest
Edward M. Ellison, MD
Executive Medical Director/Chairman of the Board, Southern California Permanente Medical Group; Chairman of the Board and CEO, The Southeast Permanente Medical Group, Inc.; Co-CEO, The Permanente Federation LLC
Robert M. Pearl, MD
Executive Director and CEO, The Permanente Medical Group, Inc.; President and CEO, Mid-Atlantic Permanente Medical Group, P.C.; Co-CEO, The Permanente Federation LLC
Margaret Ferguson, MD
Executive Medical Director, Colorado Permanente Medical Group, P.C.
Mary L. Wilson, MD, MPH
Executive Medical Director, The Southeast Permanente Medical Group, Inc.
Geoffrey S. Sewell, MD, FACP
President and Executive Medical Director, Hawaii Permanente Medical Group, Inc.; Chairman, National Permanente Executive Committee, The Permanente Federation LLC
Imelda Dacones, MD
CEO and President, Northwest Permanente, P.C.
