Renton, Wash.-based Providence recorded an operating loss of $486 million (-1.7% operating margin) in 2025, an improvement from an operating loss of $546 million (-1.9% margin) in 2024, according to its March 26 financial report.
The 51-hospital system said its improved operating performance in 2025 was primarily attributable to growth in operating revenue from increased patient volumes, offset by higher operating expenses.
Total operating revenue was $29.5 billion for the 12 months ended Dec. 31, up from $28.1 billion during the same period last year. Net patient service revenue was $24.5 billion, up from $23.4 billion. Premium revenue was $550 million, up from $502 million. Capitation revenue was $2 billion, up from $1.9 billion.
Total operating expenses were $29.6 billion in 2025, up from $28.4 billion in 2024. Salaries and benefits held steady at $15.6 billion. Supply expenses totaled $5.3 billion, up from $4.9 billion. Purchased services, professional fees and other expenses totaled $7 billion, up from $6.4 billion.
Providence also recorded $354 million in restructuring costs in 2025, up from $183 million in 2024.
“Over the past year, we have integrated previously siloed functions, streamlined leadership structures, and refined and focused our portfolio on core services, allowing us to direct more resources to the front lines of patient care,” Providence President and CEO Erik Wexler said in a March 26 news release. “These actions are positioning Providence for long-term sustainability and a strong trajectory into 2026.”
CFO Greg Hoffman, who is retiring in June, said the system managed expenses responsibly, improved productivity and enhanced the efficiency of its care delivery in 2025.
“These efforts helped us navigate reimbursement, regulatory, inflationary and workforce pressures while supporting high-quality care for the communities we serve,” Mr. Hoffman said.
Providence reported a net loss of $238 million in 2025, compared to a net loss of $231 million in 2024.
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