Providence posts $310M operating loss in Q3

Providence posts $310M operating loss in Q3

Becker’s Hospital CFO Report

November 29, 2023

Renton, Wash.-based Providence reported a $310 million operating loss (-4.3% margin) in the third quarter, down from a $164 million loss (-2.3% margin) in the same period last year, according to financial documents published Nov. 29. Despite a 5% year-over-year increase in third-quarter revenue, the 51-hospital system’s overall performance was affected by a 7% increase in expenses, which was driven by wage increases, higher supply costs and higher costs to serve patient volumes. In the third quarter, salary and benefit expenses rose 8% year over year. Supply costs increased 8% compared to the third quarter of 2022, largely due to a 21% increase in pharmaceutical costs, according to the health system. ... For the nine months ending Sept. 30, Providence reported an $857 million operating loss, compared with a $1.1 billion operating loss in the prior-year period.