Renton, Wash.-based Providence is committing more than $600 million in merit and market adjustments for staff in 2026, President and CEO Erik Wexler said in a Jan. 5 internal message shared with Becker’s.
The health system, which employs 125,000 caregivers across 51 hospitals, 1,014 clinics and a range of health and social services in seven states, announced the investment as part of its 2026 strategic overview.
“Removing barriers that get in the way of meaningful work is a first step and one of my top priorities,” Mr. Wexler said in the memo. “Based on what we’ve heard from you, we are making enhancements to the Caregiver Service Portal (ServiceNow) and the ticketing process to improve responsiveness and your overall experience.
“We’re also able to invest more in pay increases this year than ever before, because of the difficult choices we made in 2025.”
In 2025, Providence implemented restructuring efforts that included workforce reductions and service line changes. Hundreds of roles were eliminated across Providence Swedish, Providence Oregon and other ministries. The system also closed four occupational medicine clinics in Portland, Ore., and in June implemented a restructuring plan that affected 600 full-time equivalent positions across seven states.
“We made a commitment to be courageous and respond to the signs of the times,” Mr. Wexler, who has described the current environment as a “polycrisis” shaped by overlapping economic, regulatory and environmental threats, told Becker’s in December. “That meant leaning into the core services most in demand, especially those that impact community health status.”
Mr. Wexler also highlighted other components of the 2026 strategy, including support for professional growth and internal talent development, significant investment to replace equipment and modernize care settings, and partnerships with organizations “that bring expertise and resources to support our communities.” He pointed to Providence’s transition of its home health and hospice services to a joint venture with Compassus as an example.
Mr. Wexler said Providence will also expand adoption of ambient technology in 2026 to reduce documentation burden.
“Healthcare needs even more attention on culture and our caregivers,” Chief People Officer Greg Till told Becker’s in a Jan. 7 interview. “We have some of the hardest jobs in the market. Our clinical caregivers are physically, mentally and spiritually giving of themselves every day.
“At Providence, we’re making a big commitment in 2026 and beyond to revitalizing culture after several really hard years. [Mr. Wexler] just sent out a message announcing that we’re investing $600 million in caregiver pay increases this year. We’re committed to being a leader in workforce development and doing all we can to restore the joy of practice.”
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