Relevant Documents:
Quarterly ReportPress Release
Providence St. Joseph Health posted a net operating loss of $345 million for the quarter ended March 31 as cost increases outpaced a recovery in revenue, according to a continuing disclosure quarterly report posted to EMMA. The $345 million deficit of revenue over expenses from operations was narrower than the $510 million gap reported for the same period the previous year.
Operating results for the quarter improved due to higher patient volumes but were offset by increased operating expenses driven by inflation, the national health care labor shortage, delayed reimbursement from payers and global supply-chain disruptions.
Providence’s operating revenue was $6.8 billion, up from $6.3 billion a year earlier. Operating expenses totaled $7.14 billion, up from $6.8 billion in the year-ago period.
Operating EBIDA was $26 million for the first three months of the year. A financial market rebound drove investment gains of $259 million for the three months ended March 31, bringing Providence’s total unrestricted cash and investments to $9.4 billion, the company reported.
Providence saw patient volumes increase during the quarter, with net patient revenues increasing 8%. Meanwhile, the cost of pharmaceuticals and medical supplies jumped 13%, and salary and benefit expenses increased 5% due to wage increases and the continued need for agency labor, the company reported.
“Although external pressures are expected to persist into 2023, we are optimistic about the road ahead.
Staying the course on our strategies for recovery and renewal is key to navigating the times and
positioning us to continue improving the health of our communities well into the future,” Providence CFO Greg Hoffman said in a press release.