A Message from Bernard Tyson

The deteriorating economy has been at the top of all our minds for months, with no clear end in sight.  Our hearts have gone out to the millions of Americans that have lost their jobs, their homes, and their financial stability.  Those being directly affected by this economic turmoil aren't just nameless, faceless people across the country.  This crisis is much closer to home, affecting our friends and neighbors, our relatives, and our members.  

Kaiser Permanente has not been immune to the challenges that are affecting individuals and businesses across the country, and throughout the world.  By now, many of you are aware of our publicly reported year-end financial earnings statement issued last week.  Thanks to your hard work and dedication, this report announced that we met our expectations for operating income for the year.  It also revealed that our income from investments suffered significantly leading to substantial losses in non-operating income and a combined net loss for the year.  While our business model remains strong, the global economy is having a detrimental impact on our customers, our membership, and our investments.  It is clear that an extended economic recession will profoundly affect how we do business and will require that we capitalize on our integrated system and our investments in people and technology to improve our cost trends and retain our membership.  

Kaiser Permanente senior leaders, including the National Leadership Team, the Regional Presidents Group, Executive Medical Directors, and the Executive Director of the Coalition of Kaiser Permanente Unions, have held a series of meetings over the past two months focusing on what it will take to ensure that we are prepared to weather this economic storm while continuing to improve the quality of care and service to our members, as they remain our highest priority.  We worked together and discussed multiple scenarios and plans that will help position us for success, taking into consideration both the known and unknown factors of this uncertain time.  The purpose of this letter is to explain our approach, and enlist your help during these challenging times.