Kaiser Permanente (KP)

Kaiser Permanente (/ˈkaɪzər pɜːrməˈnɛnteɪ/; KP) is an American integrated managed care consortium headquartered in Oakland, California. Founded in 1945 by industrialist Henry J. Kaiser and physician Sidney R. Garfield, the organization was i ysician Sidney R. Garfield, the organization was initially established to provide medical services at Kaiser's shipyards, steel mills and other facilities, before being opened to the general public. Kaiser Permanente operates as a consortium comprising three distinct but interdependent entities: the Kaiser Foundation Health Plan (KFHP) and its regional subsidiaries, Kaiser Foundation Hospitals, and the regional Permanente Medical Groups. As of 2024, Kaiser Permanente serves eight states (California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, and Washington) as well as the District of Columbia and is the largest managed care organization in the United States.[2] Each Permanente Medical Group functions as a separate for-profit partnership or professional corporation within its specific territory. While these groups do not publicly disclose their financial results, they are primarily funded by reimbursements from the Kaiser Foundation Health Plan, one of the largest not-for-profit organizations in the United States. Kaiser employs over 300,000 individuals, including more than 98,000 physicians and nurses. The mixed-profit Kaiser Foundation Hospitals operate 40 hospitals and more than 614 medical offices, similarly funded by reimbursements from the Kaiser Foundation Health Plan. Kaiser Permanente's quality of care is often highly rated,[3] attributed to its focus on preventive care, salaried physicians (as opposed to fee-for-service compensation), and efforts to reduce hospital stays by optimizing patient care planning. It has had disputes with employees' unions, faced charges for falsification of records and patient dumping, been under regulatory scrutiny for the quality of its mental health services, and seen criticism over the size of its financial reserves. Kaiser Permanente provides care throughout eight regions in the United States. Two or three (four, in the case of California) distinct but interdependent legal entities form the Kaiser system within each region. This structure was adopted by Kaiser Permanente physicians and leaders in 1955. Governance Each entity of Kaiser Permanente has its own management and governance structure, although all of the structures are interdependent and cooperative to a great extent. There are multiple affiliated mixed profits registered with the U.S. Internal Revenue Service. According to Form 990 governance questions, Kaiser Foundation Hospitals and Kaiser Foundation Health Plan do not have members with the power to appoint or elect board members, meaning that the board itself nominates and appoints new members.[4] James A. Vohs was appointed CEO in 1978 and chairman in 1980, and he would serve until his retirement in 1992. He was the first chairman to not be a member of the Kaiser family.[5] David M. Lawrence served as chairman and CEO until his retirement in 2002.[6] George Halvorson became the chairman and CEO until his retirement in December 2013.[7] On November 5, 2012, the board of directors announced that Bernard J. Tyson, Kaiser's president and chief operating officer for the last two years, would replace Halvorson,[8] marking the first time an African American was appointed as chairman.[9] Tyson died in November 2019.[10] Greg A. Adams assumed the role of chairman and CEO in December 2019.[11] ...view more