Providence records $214M operating loss through Q3

Despite receiving $682 million in federal aid, Renton, Wash.-based Providence recorded an operating loss in the first nine months of the year, according to recently released financial documents

In the nine-month period ended Sept. 30, the 51-hospital network posted a $214 million operating loss. In the same period last year, Providence saw an operating income of $198 million.

The health system saw its revenue reach $18.9 billion in the nine months ended Sept. 30. This compares to $18.7 billion recorded in the same period one year prior. However, Providence saw its net patient revenue decline by about $1 billion year-over-year, to $13.9 billion.

Providence's overall revenue was higher in the first nine-months of 2020 compared to 2019 due to grants from the federal Coronavirus, Aid, Relief and Economic Security Act, the health system said. 

The health system saw its expenses climb 4 percent year over year to $19.1 billion. The expense increase was driven by labor and pharmaceutical costs, as well as an increase in the cost and amount of staff protective gear, Providence said.

Providence ended the nine-month period of this year with a net income of $49 million. The health system attributed the income to a nonoperating gain of $263 million. In the first nine months of 2019, Providence recorded a net income of $970 million.

"As I look back on the first nine months of the year, I am incredibly proud of how the caregivers of Providence have stepped up to meet the challenges in front of us. We have many more months of COVID-19 ahead, and we are committed to continue navigating the pandemic and ensuring the health and safety of our caregivers and those we serve," Providence President and CEO Rod Hochman, MD, stated.

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