2019 ANNUAL REPORT

2019 ANNUAL REPORT 2
EXECUTIVE LETTER As our integrated health care organization approached its 75th year of existence in 2019, Kaiser Permanente’s doctors, hospitals, and health plan continued to make important progress on our mission of providing high-quality, affordable health care services and improving the health of our members and the communities we serve.
Our first priority is always the health and safety of our patients, members, communities, and employees. Our more than 217,000 employees and over 23,000 Permanente Medical Group physicians and clinicians are delivering on our mission through hard work, commitment, innovation, and dedication. Our shared purpose inspires and drives us. We focus on prevention, state-of-the-art care, expert disease management, and total health. Our front-line employees, clinicians, and labor partners are all working to meet the health needs of our members and communities and continue to be an industry-leading voice for advancing evidence-based care.
The quality of Kaiser Permanente care is demonstrated in many ways, and primarily in the difference we make in saving and improving lives. Independent measures of our results include the 52 number one rankings in quality measures we earned from the National Committee for Quality Assurance, our 31 hospitals rated “high-performing” by independent rating organizations, and the many top ratings our health plans have earned. We are proud of the work we did to deliver high-quality care and coverage to our 12.2 million members in 2019. We also recognize that more needs to be done to push ourselves and the rest of the health care industry to improve health in our country by making high-quality care accessible, coordinated, and affordable.
Already a leader in providing our members high-quality, compassionate care through the use of a variety of virtual formats, we strive to learn and develop ways to integrate technology even more seamlessly into patient care. These enhancements create convenience for our members, enable seamless collaboration among our care teams, and promote better treatment, and faster diagnosis and recovery for our patients. We continue to invest in technology and advance health care delivery by both implementing and creating evidence-based knowledge and care to benefit the health of our patients and our broader communities. We continue to share our discoveries and breakthroughs with the world.
Kaiser Permanente was founded on a commitment to keeping our members healthy and restoring them to health after injury or illness. Since our inception we have also had a larger goal — based on our belief that high-quality health care should be accessible and affordable to all — to improve the health of our communities. As part of our approach, in 2019 we gave nearly $3.4 billion to support community health, including $577 million in assistance to cover part or all of the medical expenses for nearly a half-million low-income, uninsured or

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underinsured patients through our Medical Financial Assistance program. We launched Thrive Local, one of the most comprehensive, far-reaching social health networks of its kind, which connects health care programs and people with social services providers to address pressing social needs — including housing, food, safety, utilities, and more — for millions of people across the United States.
Knowing the link between housing and health, in 2019 we established a $100 million loan fund to create and preserve rental homes for low-income residents throughout the areas we serve, as part of our work to take on housing instability and homelessness. We also made significant progress on our work to become climate neutral and earned the Environmental Protection Agency’s 2019 Green Power Leadership Award for our use of renewable energy sources to power our 39 hospitals and more than 700 medical offices.
The unexpected passing of our chairman and CEO Bernard J. Tyson in late 2019 challenged us to honor his memory by remaining focused on continuing to improve and make our members’ lives better, our communities healthier, and our employees inspired and supported. The Kaiser Permanente Bernard J. Tyson School of Medicine — named to honor his legacy — began accepting applications from prospective students in 2019, for admission to the school’s first class in the fall of 2020. Learn more about Bernard Tyson’s legacy below.
The 2020 COVID-19 pandemic has challenged health care organizations across the globe, including ours. Fortunately, our work throughout 2019 positioned us well, once the pandemic hit, to be able to deliver expert care and service to our patients, members, customers, and communities.
Our annual report tells the story of the progress we made during 2019 in our mission to deliver high-quality, affordable, and equitable care and coverage, as well as the impact we have had on improving the health of our members and the communities we serve. We are poised to continue to lead the way and deliver further achievements in the years to come.
Greg A. AdamsChairman and CEOKaiser Foundation Health Plan, Inc.Kaiser Foundation Hospitals
Imelda Dacones, MDChair, National Permanente Executive CommitteeThe Permanente Federation, LLCPresident and CEONorthwest Permanente, P.C.

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The legacy of
BERNARD J. TYSON
Bernard J. Tyson’s career with Kaiser Permanente spanned more than 30 years. Over the course of his career, he successfully managed nearly every major part of the organization’s health plan and hospital system, serving in roles from hospital administrator and division president to chief operating officer before being named CEO in 2013 and chairman of the board of directors in 2014.
He was a transformational leader in health care, health equity, mental health care, and addressing social determinants of health whose influence was recognized worldwide. He understood that Kaiser Permanente’s work extended beyond our medical centers and into the larger community.
As chairman and CEO, Tyson championed major initiatives around making care and coverage more affordable for our members and customers. He
was an outspoken leader of our efforts to address the social determinants of health — such as access to food, transportation, and affordable housing — as a way to improve the health of individuals and communities. He was a passionate advocate of Kaiser Permanente’s care, which supports the mind, body, and spirit, and working with our clinicians he sought to transform Kaiser Permanente’s approach to mental health and wellness, focusing on new care models, mental resiliency, medical research,

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and reducing stigma. Tyson was a powerful spokesperson for Kaiser Permanente’s commitment and efforts to address climate change and its effects on health.
Tyson believed everyone should have the ability to access high-quality health care and have the same opportunity for good health, and he challenged the health care industry to address the inequities in care that he saw in this country.
Along with our Southern California Permanente Medical Group leadership, Tyson was the driving force behind the creation of the Kaiser Permanente School of Medicine and its aim to help redefine medical education and train physicians
to be outstanding clinicians, committed patient advocates, and innovative leaders. The school’s board of directors decided to honor Tyson’s memory and accomplishments by naming the institution the Kaiser Permanente Bernard J. Tyson School of Medicine shortly after his unexpected passing in November 2019.
Tyson dedicated much of his life and career to the mission of Kaiser Permanente. He was a formidable change agent and tireless champion of making high-quality health care more affordable and accessible for all. Through his work at Kaiser Permanente, his legacy will continue.

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QUALITY
We seek to lead the nation in delivering person-centered care that is safe, effective, timely, efficient, and equitable. We consistently strive to deliver the right care, at the right time, in the right setting, to maximize quality, experience, and outcomes, and ensure we are meeting our patients’ needs and preferences.
We are committed to measuring and tracking
the results of our performance on behalf of our
members and patients, both to demonstrate
success as well as determine where we can
continue to do better. We measure our success
by focusing on outcomes that are meaningful
to patients, customers, and communities. We
seek to improve even further our clinical and
safety scores as well as our member satisfaction
ratings, which are consistently among the
highest in the nation.
In doing our work, we recognize that health is
about more than physical health but is about
body, mind, and spirit.
In addition to bringing a compassionate,
whole-person approach, our highly trained
clinical teams use evidence-based methods
and leading-edge technology to improve the
care we deliver, from the simplest, proven
forms of prevention to treatment of the most
complicated and chronic health conditions. This
combination of clinical accomplishment and
innovation means our patients can trust that
the effective, timely, and safe care they receive
is best for them. Our leadership in prevention,
diagnosis, and treatment is how we help our
members live healthy, engaged lives.
As a part of our mission, we continue to invest
in technology, and build and improve facilities,
to improve our ability to deliver high-quality,
affordable, and accessible care to more people.

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QUALITY FAST FACTS
52Quality measures in which Kaiser Permanente is rated number one in the nation by NCQA (National Committee for Quality Assurance)
31Hospitals rated “high performing” in U.S. News & World Report’sannual survey
9Consecutive years we have earned thePharmacy Quality Alliance Excellence in Quality Award
7Regions where KP’s Medicare health plans received the highest rating (5 stars) from the Centers for Medicare & Medicaid Services
8Kaiser Permanente regional research centers
2,620Studies underway(including clinical trials)
$127MFederal funding for research
180Full-time researchers
$89MKaiser Permanente funding for research
1,670Research support staff members
$58MOther funding for research
1,890Publications

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HEALTH
Kaiser Permanente believes that total health is more than freedom from physical affliction. It’s about mind, body, and spirit. Delivering total health means our members can enjoy healthy, engaged lives and our communities can benefit from equal access to high-quality health care.
Caring for our members and patients, working
toward healthier outcomes, and improving
the access of high-quality care for more
Americans guides the work of our 240,000
caring, compassionate professionals. Through
our distinctive integrated model, ongoing
technological advancements, and commitment
to our communities, Kaiser Permanente is
focused on delivering better health for all.
We believe that all members and patients,
regardless of their physical, mental, or
socioeconomic status, have the right
to equitable health outcomes and a
personalized, high-quality care experience.
We’re a recognized leader in eliminating care
disparities, and we continue to drive progress
by seeking to address care gaps among
underserved populations.
We continue to help improve the lives of our
members by delivering evidence-based,
outcomes-driven mental health and addiction
care in the right setting at the right time. This
includes leveraging technology and using
outcomes-driven practices to engage patients
in their care plans to enhance progress
and results.
We are also leading the way in reducing the
stigma associated with mental health conditions
and working with trusted partners to help build
resilient families, schools, and communities
by focusing on preventing and mitigating the
impact of adverse childhood experiences.
Kaiser Permanente’s model of integrated care
and coverage supports total health — mind,
body, and spirit — by preventing disease,
managing complex and chronic conditions,
supporting mental health, and encouraging
healthy lifestyles. In short, Kaiser Permanente
helps our members and communities thrive.

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HEALTH FAST FACTS
113K Babies delivered
47MDoctor’s office visits
143KInpatient surgeries
2.2MColorectal cancer screenings*
1.04MMammograms*
95.2MPrescriptions filled
*Data from 2019 National Committee for Quality Assurance Healthcare Effectiveness Data and Information Set.

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INNOVATION
The creation of Kaiser Permanente in 1945 was an innovative act of creative disruption — a reimagining of the existing model of health care. We have remained an innovation leader ever since. We seek opportunities to leverage our integrated care delivery system, highly skilled physicians, superior care, and data-rich model to improve health and medical care.
Kaiser Permanente is one of the nation’s most
productive research institutions with one of the
world’s largest medical data sets. We deploy
this significant resource to advance care and
deliver better outcomes, transforming the
future of health and health care. We are in the
forefront of innovation in the rapidly evolving
health care environment.
Kaiser Permanente uses its resources, size
and scope, and partnerships with community
organizations to develop solutions that improve
the health of our members and patients and
the communities we serve, bring our care and
coverage to more Americans, strengthen and
innovate our current model, and broaden
our impact.
We empower our members and patients with
comprehensive telehealth options that provide
choice, convenience, and affordability and help
our care teams provide effective, coordinated,
high-quality care and service. Our digital
technology is successfully transforming care
and our members’ care and service experience.
We delivered over 185 new capabilities in 2019
on kp.org and mobile, which received 343
million member visits for the year. In addition,
Kaiser Permanente delivered a top digital
experience among health plan insurers.

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INNOVATION FAST FACTS*
344M Visits to kp.org
34.2MPrescriptionsfilled online
7.1MMembers registered on kp.org
250KVideo visits
8MOnline requests for appointments
31.6MSecure emails sent
60.6MLab test results viewed online
*Data in this section does not include Kaiser Permanente Washington.

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COMMUNITY
We are committed to helping improve conditions for health in our communities by leveraging the many parts of our organization and engaging the passion of our people. Our strategic investments and other initiatives help address the social, environmental, and economic conditions that are important drivers of poor health.
Our mission extends beyond the delivery of
health care to include addressing the health
of the communities we serve. As a nonprofit
health care organization, we strive to ensure
that access to good health and quality health
care are available for all.
We continue to to strive to improve community
health through a wide array of initiatives and
new approaches, including those securing
stable and affordable housing, fostering
real economic opportunities, creating safe
and successful schools, addressing harmful
environmental challenges, and broadening
availability of nutritious food, to name some of
our areas of focus.
In all our work, highlighted in our Community
Health Snapshot, we remain committed to
making real improvements in equity in our
communities. Only through addressing the
root causes of health can we help improve total
health for everyone.
2019 ANNUAL REPORT

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COMMUNITY FAST FACTS
977K People served by Medicaid and Children’s Health Insurance Plan
510KStudents and schoolstaff served byThriving Schools
49Percent of nonhazardous waste reused, recycled, or composted
500KPeople served through Medical Financial Assistance and Charitable Health Coverage
$3.4BSpent on community health as part of our ongoing commitment to improving the health of the communities we serve
$1.9BAmount spent with women- and minority-owned businesses
67Percent of operations powered by renewable electricity

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PEOPLE
At Kaiser Permanente, our people are our greatest resource. Their commitment to our mission is inspiring, their expertise is industry-leading, and the extraordinary work they do every day for our members makes a real difference in people’s lives.
We seek to foster a high-performing, inclusive
culture that drives collaboration, engagement,
and continuous learning. In an inclusive
workplace environment our employees can
thrive, which in turn benefits our members and
communities. Our success is demonstrated in
part through the many independent accolades
we earn as a best place to work.
We continue to work together with the unions
that represent our employees, in one of the
nation’s longest-standing labor-management
partnerships. Through our ongoing
partnership, we share information, raise
concerns, work on joint problem-solving,
and celebrate the many successes of our
dedicated workforce.
At Kaiser Permanente, equity, inclusion,
and diversity are inextricably linked to our
mission and are part of everything we do. Our
communities are more diverse than ever, and
they expect a personalized experience from
their health care team. We strive to provide
culturally responsive and competent care and
services to our members and promote the
values of equity, inclusion, and diversity in the
wider communities where we operate. Our
goal is to have a workforce that reflects the rich
diversity of our members and communities and
understands their needs and preferences.
The dedication and expertise our workforce
demonstrated while delivering high-quality
care and coverage in 2019 is inspiring. The
COVID-19 pandemic that hit in 2020 has
stressed and challenged every part of health
care, and the people of Kaiser Permanente met
the challenge with that same dedication and
expertise, as well as courage, compassion,
and commitment to care for our members and
each other.

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PEOPLE FAST FACTS
12.2M Members
217KEmployees
23KPhysicians
712Medical offices and other care facilities
63KNurses
39Hospitals

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FINANCIALS FAST FACTS
$84.5BOperating revenues
$2.7BOperating income
$7.4BNet income
$3.5BCapital spending
$3.4BSpent on community health programs, 4.1% of operating revenues

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ABOUT KAISER PERMANENTEKaiser Permanente is helping shape the future of health care. We are recognized as one of America’s leading health care providers and nonprofit 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, 2019, we had 12.2 million members in 8 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 skilled 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, visit us at about.kp.org.

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LEADERSHIP TEAM(as of December 31, 2019)
Board of DirectorsKaiser Foundation Health Plan, Inc. and Hospitals
Our board of directors as of December 31, 2019. See our current board.
Greg A. AdamsChairman and Chief Executive Officer
Ramón Baez
David J. Barger
Regina Benjamin, MD, MBA
Jeffrey E. Epstein
Leslie S. Heisz
David F. Hoffmeister
Judith A. Johansen, JD
Edward Pei
Margaret A. Porfido, JD
Richard P. Shannon, MD
Cynthia A. Telles, PhD
A. Eugene Washington, MD, MPH
Kaiser Permanente National Leaders
Our national leaders as of December 31, 2019. See our current national leaders.
Greg A. AdamsChairman and Chief Executive Officer
Anthony A. BarruetaSenior Vice President, Government Relations
Kathryn BeiserSenior Vice President and Chief Communications Officer
Vanessa M. BenavidesSenior Vice President and Chief Compliance and Privacy Officer
Bechara Choucair, MDSenior Vice President and Chief Health Officer
Arlene PeasnallSenior Vice President and Interim Chief Human Resources Officer
Patrick T. Courneya, MDExecutive Vice President and Chief Medical Officer
Richard (Dick) D. DanielsExecutive Vice President and Chief Information Officer
Kim HornRegional President, Mid-Atlantic States
Mark S. ZemelmanSenior Vice President and General Counsel
Kathy LancasterExecutive Vice President and Chief Financial Officer
Janet A. LiangRegional President, Northern California
Julie Miller-PhippsRegional President, Southern California
Susan MullaneyRegional President, Washington
Jim SimpsonRegional President, Georgia
Arthur M. Southam, MD, MBA, MPHExecutive Vice President, Health Plan Operations
Ron VanceInterim Regional President, Hawaii
Mike RamseierRegional President, Colorado
Ruth Williams-BrinkleyRegional President, Northwest

192019 ANNUAL REPORT
Permanente Medicine
Permanente Medical Group Leaders
Imelda Dacones, MDPresident and CEO, Northwest Permanente, P.C.
Edward M. Ellison, MDExecutive Medical Director/Chairman of the Board, Southern California Permanente Medical Group; Chairman of the Board and CEO, The Southeast Permanente Medical Group, Inc.
Margaret Ferguson, MD, MBAPresident and Executive Medical Director, Colorado Permanente Medical Group, P.C.
Richard S. Isaacs, MD, FACSCEO and Executive Director, The Permanente Medical Group; President and CEO, Mid-Atlantic Permanente Medical Group
Geoffrey S. Sewell, MD, FACPPresident and Executive Medical Director, Hawaii Permanente Medical Group, Inc.
Paul Minardi, MDPresident and Executive Medical Director, Washington Permanente Medical Group, Inc.
Mary L. Wilson, MD, MPHPresident and Executive Medical Director, The Southeast Permanente Medical Group, Inc.
The Permanente Federation
Edward M. Ellison, MDCo-CEO
Richard S. Isaacs, MD, FACSCo-CEO
Imelda Dacones, MDChair, National Permanente Executive Committee
Geoffrey S. Sewell, MD, FACPAt-large member, National Permanente Executive Committee
Chris GrantChief Operating Officer and Executive Vice President
David Bell, MDExecutive Vice President, People and Leadership Strategy
Edward Lee, MDExecutive Vice President, Information Technology, and Chief Information Officer
Nancy Gin, MDExecutive Vice President, Quality, and Chief Quality Officer
Daryl Kurozawa, MD, FACSExecutive Vice President, Products/Sales & Marketing
Todd M. Sachs, MDExecutive Vice President, Finance and Strategy
Stephen Parodi, MDExecutive Vice President, External Affairs, Communications and Brand
Richele Thornburg, MSExecutive Vice President, People and Leadership Strategy

Kaiser Permanente 2019 Annual Report title page

2019
ANNUAL REPORT
ABOUTKAISER PERMANENTE

Excutive Letter
The Legacy of Bernard J. Tyson
Quality
Health
Innovation
Community
People
Financials Fast Facts
About Kaiser Permanente
Leadership Team

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