Providence may be on track to turn bad after a difficult 2022, according to financial results reported Monday.
The Catholic nonprofit health system has suffered billions of dollars in losses and underwent a sweeping restructuring last year. For the first quarter of 2023, Renton, Washington-based Providence reported a net loss of $117 million, a substantial rebound from a $4.25 billion loss a year before the split with Hoag. based in Newport Beach, California. Providence’s first-quarter operating loss amounted to $345 million.
Revenue grew 8.2% to $6.8 billion and investments reached $259 million as financial markets improved. Expenses rose 5.1% to $7.15 billion, including 5.3% for wages 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 reimbursement and supply chain disruptions as reasons for the quarterly loss. The health system is addressing patient discharge issues affected by acute post-care staff shortages and is working to increase surgical capacity, the company said. Providence has also renegotiated some payment rates with health insurers.
Last year, Providence announced plans to reduce its seven operating divisions to three, cut executive leadership and reduce shared services.
