Providence reports year-end 2023 results
The not-for-profit health system made significant progress in the face of ongoing challenges and invested nearly $2.1 billion in community benefit.
RENTON, Wash., March 7, 2024 – Providence, a not-for-profit health system serving the Western U.S., announced today results for the fiscal year ended Dec. 31, 2023. The report showed significant progress in operating performance with revenues growing 9 percent and EBIDA improving by $755 million compared to the prior year driven by higher demand for patient services and decreases in length of stay as patient access to post-acute care improved throughout the second half of 2023. The effects of inflation, a shortage of health care workers, delayed reimbursement from payors and other issues continued to impact the organization.
“Despite continued economic and workforce challenges, we ended the year on a positive note, providing strong momentum going into 2024. Providence remained committed to the Mission by serving our communities, especially those who are most vulnerable,” said Providence President and CEO Rod Hochman, M.D. “I am proud of the work our caregivers do every day in support of our Mission.”
Remaining steadfast to the Mission, Providence made another significant investment in uncompensated care and other community benefit activities. The health system delivered $2.1 billion in community benefit in 2023, an increase of more than $600 million since 2019. This includes $1.4 billion in unpaid costs of Medicaid and $240 million in charity care.
Providence experienced higher volumes in the fiscal year ended Dec. 31, 2023 versus 2022, with acute adjusted admissions up 4% and case mix adjusted admissions up 5%. Net operating revenues were up 9% compared to the prior fiscal year, driven by higher volumes and improving rates.
EBIDA in the fourth quarter was $164 million and deficit of revenues over expenses from operations was $314 million, representing an improvement of $389 million and $287 million, respectively, from the prior year. For the fiscal year ended Dec. 31, 2023, EBIDA was $502 million and the deficit of revenues over expenses from operations was $1.2 billion, representing $755 million and $528 million improvements, respectively, to prior year.
Financial market results drove investment gains of $652 million for the fiscal year, compared with investment losses of $1 billion the prior year, bringing Providence’s total unrestricted cash and investments at $8.4 billion ending Dec. 31, 2023.
Providence began 2024 on a strengthening financial position with cash received from the 340B Drug Pricing Program remedy payment and proceeds from the sale of Tegria’s Acclara and Advata subsidiaries adding approximately 10 days cash on hand to the organization’s balance sheet.
“Providence’s caregivers have been diligently working to strengthen our financial recovery. We made positive progress in 2023, and it was good to see us end the year serving more people as access to care improved and length of stay decreased. Those are important markers on our journey toward sustained renewal,” said Providence CFO Greg Hoffman. “I want to thank our caregivers for their ongoing commitment to the Mission and meeting the needs of our communities.”
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