On July 29, 2025, managers and Alliance-represented employees received this email highlighting $230 million in savings and quality improvements by the National Affordability and Competitiveness Task Force.

Subject: Celebrating $230 Million in Savings While Enhancing Care, Service and Access

Kaiser Permanente and the Alliance of Health Care Unions have once again delivered impressive results—saving over $115 million in 2024, well above our $82.9 million savings target. Combined with  $114.38 million in savings in 2023, the partnership has achieved nearly $230 million in cost reductions over two years while improving care and service.

These results highlight the strength of our Labor Management Partnership, which brings together frontline workers, managers and physicians to improve care, safety and working conditions.

In 2024, for example, teams enhanced patient outcomes and service quality by:

• reducing pressure ulcer injuries by 83% in Moanalua 
• shortening hospital stays in the Mid-Atlantic States to save $12.9 million
• launching a transportation program in Oregon that cut referral costs by $1.4 million 

As part of the 2021 Alliance National Agreement, management and labor pledged to identify cost-saving opportunities and secure a successful long-term future for our organization, workforce, and patients.

Affordability and Competitiveness Task Force members at national and regional levels have driven these efforts, leveraging frontline expertise to reduce costs while enhancing service and care quality.

"Our partnership with the Alliance of Health Care Unions helps make Kaiser Permanente a best place to work and receive care,” says Greg Holmes, executive vice president and chief human resources officer of Kaiser Foundation Health Plan and Hospitals. “When employees share their ideas to improve processes and work in smarter ways, everyone wins. These savings demonstrate the value of listening to our people to create solutions that benefit us all — our members and our workforce — in service to our mission.”

Charmaine S. Morales, RN, president of UNAC/UHCP, attributes the achievement to the hard work and dedication of Alliance-represented workers, their managers and affordability task force members.

“The Affordability Task Force shows what’s possible when frontline caregivers come together with a shared purpose,” says Morales. “We’ve made our systems more efficient and competitive through hard work, determination, and by standing up for what’s smart and sustainable. We didn’t cut corners; we raised the bar. We made sure affordability never came at the expense of quality care, because our members expect both. When we organize, take action, and stick together, we create real, lasting change in health care.”

As a result, Alliance-represented workers earned 2024 Performance Sharing Program bonuses for contributing to KP’s success in quality, service, safety, attendance, and affordability.

Build on this success by:

• sharing this infographic to showcase how we’re saving smart and improving care
• reviewing the 2025 PSP affordability goal and meet with your unit-based team to identify opportunities for cost savings and quality improvements
• communicating ideas with your regional affordability task force

Thank you for your continued support in advancing our Labor Management Partnership.