Renton, Wash.-based Providence recorded an operating income of $111 million (1.5% operating margin) during the first quarter of 2026, up from an operating loss of $249 million (-3.5% operating margin) during the same period last year, according to its May 11 financial report.
Seven things to know:
1. Providence recorded total operating revenue of $7.5 billion during the three months ended March 31, up from $7.2 billion during the same period last year. Net patient service revenue was $6.3 billion, up from $6 billion. Premium revenue was $137 million, up from $135 million. Capitation revenue was $503 million, up from $487 million.
2. Total operating expenses were $7.3 billion in the first quarter of 2026, down from $7.4 billion during the same period last year. Salaries and benefits were $3.8 billion, down from $4.1 billion. Supply expenses were $1.4 billion, up from $1.3 billion. Purchased healthcare services were $95 million, up from $73 million.
3. Inpatient admissions increased 5% year over year in the first quarter. Case-mix-adjusted admissions also increased 5%.
4. Providence had 99,123 full-time equivalent employees as of March 31, down from 107,121 during the same period last year.
5. Providence said it has addressed healthcare’s “polycrisis” over the past year and a half by streamlining its leadership structure, reducing duplication of services and renegotiating commercial payer contracts. The system also said it sharpened its focus on core services by transferring ownership of or partnering on noncore services while improving access to care, length of stay, productivity and expense management.
6. “As we have made changes to strengthen our operations, our caregivers have kept the focus exactly where it belongs — on delivering high-quality, compassionate care for our patients,” Providence President and CEO Erik Wexler said in a May 11 news release. “That commitment is paying off and allowing us to continue investing in our Mission, so we can be here for those who are most vulnerable for the long term.”
7. Providence recorded a net income of $164 million in the first quarter of 2026, up from a net loss of $161 million during the same period in 2025.
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