Providence's annual net income slips $619M

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Providence, a 51-hospital system based in Renton, Wash., ended last year with an operating loss and lower net income than in 2019. 

The health system reported revenue of $25.7 billion, up 3 percent from 2019, according to financial documents released March 8. Though patient volumes and patient revenue were down last year, $957 million in grants made available under the Coronavirus Aid, Relief and Economic Security Act pushed Providence's revenue higher in 2020. 

Providence's expenses also increased. For the 12 months ended Dec. 31, the health system reported operating expenses of $26 billion, up 5 percent from a year earlier. The increase was driven by higher costs for personal protective equipment, pharmaceuticals and labor, the health system said.  

The health system ended 2020 with an operating loss of $306 million, compared to operating income of $214 million in 2019. 

Providence's nonoperating income totaled $1 billion in 2020, compared with $1.1 billion a year earlier. The system ended last year with net income of $739.5 million, down from $1.4 billion in 2019. 

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