Renton, Wash.-based Providence is reworking its delivery model as part of a $2 billion strategic turnaround plan for 2030, focusing on partnerships and selective divestitures as it repositions for the future.
“This includes partnering in new ways to meet the evolving needs of our communities,” a spokesperson for the system said in a statement shared with Becker’s. “It also means we may not own every service going forward. In some cases, we may co-own services or transfer ownership to organizations that are well positioned to help them grow and thrive.”
The health system comprises 51 hospitals, more than 1,100 clinics, more than 120,000 employees and 35,000 physicians across seven states, according to a Jan. 12 J.P. Morgan Healthcare Conference presentation in San Francisco.
In the third quarter of 2025, Providence saw an operating income of $21 million (0.3% operating margin), up from an operating loss of $208 million (-2.7% margin) during the same period last year.
Providence’s 2026 financial plan centers on securing positive operating margins while deploying capital for growth and return on investment. The health system also aims to strengthen its balance sheet and fund refinancing needs and facility construction projects, the presentation said.
It will also rely on key strategies like revenue growth, portfolio transformation, achieving top-quartile efficiencies and technology modernization.
Most recently, Providence sold Tegria Services Group, its health IT consulting arm, to healthcare-focused investment firm Altaris in early January.
Other recent transactions include the transfer of its home health and hospice services into a joint venture with Compassus in October 2025. The health system also sold 10 skilled nursing facilities across four states to San Juan Capistrano, Calif.-based The Ensign Group in March 2025 and sold revenue cycle company Acclara to R1 RCM in January 2024.
“These steps support our long-term financial sustainability so we can continue investing in our mission and the care and services our communities depend on,” the spokesperson said.
