Providence recorded a cumulative operating loss of $1.1 billion in the first three quarters of this year as staff shortages and weak market conditions hit its finances, the health system announced. on Monday.
The Renton, Washington-based nonprofit also cited inflation, repayment delays and supply chain disruptions as causes for its underperformance. Providence reported a net operating loss of $164 million in the third quarter, compared with $424 million in the second quarter.
Operating revenue for the first nine months of the year reached $19.57 billion, up 4% from the first three quarters of 2021. Expenses rose 7% year-on-year to $20.67 billion, including salaries and benefits profit increased by 9% and increased by 6%. increase supply costs. These numbers do not affect the performance of the Newport Beach, California-based Hoag health system, which split from Providence this year. Investment loss amounted to $1.4 billion in first three quarters
Chief Financial Officer Greg Hoffman said in a press release that Providence is addressing its labor situation. “Retention and hiring continues to be an important area of focus, and we are beginning to see the results of a concerted effort to reduce our overall reliance on costly agency staff,” he said. including the transition of traveling nurses to a permanent staff role”.
In July, Providence announced cuts to its executive team as part of an effort to move money to frontline workers.
