The 51-hospital system saw its operating revenues increase 6.8% year over to $30.7 billion for the year ended Dec. 31. Net patient service revenues increased 6.9% to $23.4 billion. Premium revenues increased 8.8% to $3 billion.
Operating expenses totaled $31.2 billion in 2024, a 4.2% increase year over year. Salaries and benefits increased 3.1% to $15.7 billion. Supply costs increased 8.2% to $4.9 billion.
Providence attributed its improvement in 2024 to strong patient volumes and a decrease in labor costs due to lower length of stay, a decreased dependence on contractor labor, and high labor productivity. The system’s higher patient volumes drove corresponding increases in operating expenses, including labor and supply costs, which were mitigated by significant gains in labor productivity and reductions in contract labor.
“The system experienced overall improvement in labor productivity due to a continued focus on staffing,” the report said.
Providence had 99 days cash on hand as of Dec. 31, down from 107 on the same date in 2023. The system had a long-term debt of $7.5 billion as of Dec. 31, compared to $8.1 billion on the same date in 2023.
The system recorded a net loss of $231 million in 2024, an improvement from a $596 million net loss in 2023.
“We are proud that Providence continues to serve more people in need year over year even as macroeconomic and regulatory pressures continue,” CFO Greg Hoffman said. “While we have made significant progress on our renew and recovery strategies post-COVID, we are not taking it for granted and are practicing continued operational focus and discipline to ensure long-term sustainability, which will position the ministry to thrive for years to come.”
