Renton, Wash.-based Providence reported an operating income of $21 million (0.3% operating margin) in the third quarter of 2025, up from an operating loss of $208 million (-2.7% margin) during the same period last year, according to its Nov. 13 financial report.
“When we started the year, we intentionally set out to reach a breakeven financial sustainability goal,” Providence President and CEO Erik Wexler said in a Nov. 13 news release shared with Becker’s. It has taken a tremendous amount of hard work and decisive action from everyone across Providence St. Joseph Health, and that effort is starting to make a real difference.”
Providence reported operating revenue of $8 billion in the three months ended Sept. 30, up from $7.6 billion during the same period last year. The system’s revenue growth was driven by an increased demand for patient services. Case mix-adjusted admissions increased by 4%, driving a corresponding increase of 5% in operating revenues.
Operating expenses were $7.9 billion for the quarter, up from $7.8 billion last year. Supply expenses increased by 8% year over year, driven by a 12% increase in pharmaceutical expenses. Providence said it reduced contract labor expenses by 33%.
“Thanks to the dedication of our caregivers and a commitment to focus and discipline, we are seeing meaningful improvements in our performance,” Providence CFO Greg Hoffman said in the release. “At the same time, the passage of H.R.1 and other external pressures continue to
challenge the entire health care sector. These headwinds reinforce the urgency of our transformation and our commitment to adapt, so we can sustain our mission and ensure continued access to high-quality care in the communities we serve.”
