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 came in at $19.57 billion, up 4% from the first three quarters of 2021. Expenses rose 7% year-on-year to $20.67 billion, including cash. wages and benefits increased by 9% and 6% increase in supply costs. These numbers do not take into account the performance of the Hoag health system based in Newport Beach, California, where separated 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 cut its executive team as part of an effort to redirect funds to frontline workers.
