Providence reports Q1 2025 results
The not-for-profit health system accelerates operational redesign amid shifting economic headwinds.
RENTON, Wash. [May. 20, 2025] – Providence, a not-for-profit health system serving the Western U.S., today announced results for the three months ended March 31, 2025. The report reflects the rapidly shifting economic headwinds impacting health systems across the country – particularly in West Coast states – while also highlighting Providence’s comprehensive effort to redesign its operations for a new reality of reduced reimbursement and rising costs.
“Our Mission calls us to serve all, especially those who are most vulnerable,” said Erik Wexler, president and CEO of Providence. “We are taking bold steps to ensure that our health system remains strong and sustainable for generations to come. This includes continued focus and discipline on our operations while also working to revitalize the practice of medicine, build new care delivery models, and leverage technology to support our caregivers and patients.”
For the three months ended March 31, 2025, Providence experienced higher volumes compared to the prior year, with inpatient admissions up 4 percent and case mix adjusted admissions up 3 percent. Operating revenues were 1 percent higher, driven by increased volumes and improved commercial rates, while operating expenses were up 6 percent, driven by costs associated with serving higher patient volumes and a 46-day strike in Oregon.
Operating EBIDA for the three months ended March 31, 2025 and deficit of revenues over expenses from operations were $111 million and $244 million, respectively. Financial market results drove investment gains of $105 million for the three months ended March 31, 2025. Remaining steadfast to the Mission, for the three months ended March 31, 2025, the health system invested $559 million in community benefit.
“While we have made significant progress in our key operating performance metrics in recent years, the last several months have brought greater uncertainty around Medicaid funding, with only slight increases in Medicare rates, and several new state laws that have increased expenses and/or decreased revenues. Meanwhile, we continue to be challenged by inflation, the national labor shortage, and ongoing delayed payments or denials from commercial insurers,” said Providence CFO Greg Hoffman. “Specifically, new laws in Oregon regarding presumptive charity care and staffing legislation have added further complexity and significant financial pressure to our operations. Rather than sitting on our hands, Providence is preparing for every scenario and is proactively redesigning our operations to ensure our Mission continues to thrive whatever happens.”
Hoffman also recognized other challenges in Q1 including the Los Angeles wildfires and the strike in Oregon. “Thank you to all our caregivers and physicians for continuing to deliver high-quality compassionate care. This includes our team in Los Angeles who kept our patients safe and continued to serve the community throughout the wildfires in January. I also want to recognize our team in Oregon. Their dedication and professionalism were instrumental during the union work stoppage, ensuring continuity of care and ultimately leading to the successful ratification of new labor contracts. We are deeply grateful for their unwavering commitment to our patients and communities,” Hoffman said.
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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 1,100 physician clinics, senior services, supportive housing, and many other health and educational services, the health system and its partners employ more than 125,000 caregivers serving communities across seven states – 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.
