Providence may be on the way to being the black following a difficult 2022, according to financial results reported Monday.
The Catholic nonprofit health system suffered multibillion-dollar losses and an extensive restructuring last year. During the first quarter of 2023, Renton, Washington-based Providence reported a $117 million net loss, a significant rebound after losing $4.25 billion loss a year before following its split with Newport Beach, California-based Hoag. Providence’s first-quarter operating losses reached $345 million.
Revenue rose 8.2% to $6.8 billion and investments reached $259 million as the financial markets improved. Expenses grew 5.1% to $7.15 billion, including 5.3% for salaries and benefits, 14.7% for supplies and 1.9% for services.
Providence, which operates 51 hospitals and more than 1,000 clinics in seven states, cited inflation, labor shortages, delayed reimbursements and supply chain disruptions as reasons for its quarterly losses. The health system is addressing patient discharge issues affected by post-acute care staff shortages and is working to increase surgical capacity, the company said. Providence has also renegotiated some payment rates with health insurance companies.
Last year, Providence announced plans to reduce its seven operational divisions to three, cut executive leadership roles and reduce shared services.