Providence's annual operating loss swells to $714M

Providence, a 52-hospital system based in Renton, Wash., ended last year with an operating loss and lower net income than in 2020. 

The health system reported revenue of $27.3 billion, up 6 percent from 2020, according to financial documents released March 9. Net patient service revenues were up 10.2 percent year over year. 

Providence's expenses also increased. For the 12 months ended Dec. 31, the health system reported operating expenses of $28 billion, up 8 percent from a year earlier. Higher wages, increased agency staffing costs and overtime pushed Providence's labor costs 10 percent higher year over year, the system said in an earnings release

The health system ended 2021 with an operating loss of $714 million, compared to an operating loss of $306 million a year earlier. 

Providence's nonoperating income totaled $1.2 billion in 2021, up from $1 billion in 2020. The system ended last year with net income of $518 million, down from $740 million in 2020. 

"When the first U.S. patient with COVID-19 was admitted to a Providence hospital two years ago, there was not a playbook for what was about to unfold. But together we responded to the challenge," Providence CFO Greg Hoffman said in the earnings release. "Though the headwinds will be strong the next few months, we have charted a clear path to recovery and renewal, and we will continue to invest in the health and well-being of our caregivers and patients."

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