Providence reports Q2 2024 results
The not-for-profit health system continues to improve performance while meeting growing community needs.
RENTON, Wash., August 21, 2024 – Providence, a not-for-profit health system serving the Western U.S., today announced results for the three months ended June 30, 2024. The report showed continued improvement in operating performance, driven by stronger patient volumes, reduced use of agency contract labor and lower lengths of stay.
“Thanks to the dedication and support of everyone at Providence, we are continuing to meet the growing needs of our communities by delivering high-quality, compassionate and affordable care. Despite ongoing headwinds, our strategies for renewal and recovery are driving positive results, and we remain focused on continued improvement in 2024,” said Providence CFO Greg Hoffman.
For the three months ended June 30, 2024, Providence experienced higher volumes compared to the prior year, with inpatient admissions and case mix adjusted admissions both up 5 percent. Operating revenues were 6 percent higher, driven by increased volumes and improved reimbursement rates while operating expenses were up 5 percent.
Operating EBIDA in the second quarter was $259 million, and the deficit of revenues over expenses was $123 million, representing an improvement of $51 million and $79 million respectively, compared to the prior year. This brought operating EBIDA to $808 million and net operating income to $53 million for the first half of the year.
Financial market results drove investment gains of $73 million for the three months ended June 30, 2024, compared with $103 million in the prior year, bringing Providence’s total unrestricted cash and investments to $8.2 billion as of June 30, 2024.
Remaining steadfast to the Mission, for the six months ended June 30, 2024, the health system invested $845 million in community benefit.
“Though these are challenging times for health care across the country, the Mission of Providence is well positioned to endure and thrive for generations thanks to our nurses, doctors and caregivers. Together, we are making important strides and advancing the healing ministry, especially for those who are most vulnerable,” said Providence President and CEO Rod Hochman, M.D. With Dr. Hochman’s retirement at the end of the year, Providence COO Erik Wexler has been named the organization’s next president and CEO, effective Jan. 1, 2025.
About Providence
Providence is a national, not-for-profit Catholic health system comprising a diverse family of organizations and driven by a belief that health is a human right. With 51 hospitals, more than 1,000 physician clinics, senior services, supportive housing and many other health and educational services, the health system and its partners employ more than 129,000 caregivers serving communities across Alaska, California, Montana, New Mexico, Oregon, Texas, and Washington, with system offices in Renton, Wash., and Irvine, Calif. Learn about our vision of health for a better world at Providence.org.
