Renton, Wash.-based Providence Health & Services reported its operating margin improved to 1.8 percent in 2014, up from 1.1 percent a year earlier.
The system posted an operating surplus of $219.2 million on $12.5 billion in revenue in 2014, compared with an operating surplus of $37.7 million on $11.1 billion in revenue in 2013.
Providence's financial boost was driven largely by higher patient volume, specifically Medicaid patients. The system served 26 percent more Medicaid patients in 2014 than the previous year due to three of the five states the system operates in expanding their Medicaid programs.
The system reported net income of $771.4 million, up from $253.3 million in 2013. The rise in net income was driven by affiliation contributions and investment performance, said Todd Hofheins, executive vice president and CFO of Providence.
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