Providence posted an operating loss of $202 million in the second quarter of 2023, a $222 million improvement from the $424 million operating loss posted in the same period last year, according to an Aug. 28 news release from the Renton, Wash.-based health system.
A financial market rebound netted $103 million in investment gains for the three months ended June 30, which brough Providence's total unrestricted cash and investments to $8.9 billion.
In the first six months of 2023, total operating revenue was $14 billion, compared to $12.7 billion from the same period last year, according to the financial report. Total operating expenses for the first six months of the year were $14.6 billion, compared to $13.6 billion over the same period in 2022. Operating losses for the first six months of the year were $547 million compared to $934 million last year.
Providence's patient volumes increased during the first six months of 2023, with net patient revenues up 12 percent, according to the releases. The cost of pharmaceuticals was 10 percent higher than the same period last year and medical supplies increased 9 percent. Salary and benefit expenses are up 5 percent.
"External pressures — including inflation, the shortage of health care personnel and an increase in denials or delays in reimbursement — have persisted well into 2023," Providence CFO Greg Hoffman said in the release. "That is why we continue to stay the course on our strategies for recovery and renewal. These efforts are making an important difference, and together with the caregivers of Providence, we are improving our overall operating performance and continuing to meet the growing health needs of our communities."