Providence, a 52-hospital system based in Renton, Wash., saw its operating loss hit $221.9 million in the first quarter, compared to an operating loss of $276.2 million recorded in the first quarter of 2020, according to financial documents released May 17.
"We’re turning a corner and seeing signs of renewal," said Rod Hochman, MD, president and CEO of Providence. "Throughout this crisis, the caregivers of Providence have stepped up to respond to the needs of our communities, and we are incredibly grateful to everyone who has been serving on or supporting the front lines of care."
The health system recorded revenue of $6.4 billion in the quarter ended March 31, up 1.6 percent from the same period in 2020. Providence said the growth was driven by 9 percent growth in capitation revenue and 57 percent growth in diversified revenue.
Operating expenses reached $6.7 billion in the first quarter, an increase of 1 percent from the same period last year. Providence said the expense increase was driven by costs to support caregivers and to serve patients, including labor and more personal protective gear and drugs.
After factoring in $306.5 million in nonoperating income, Providence ended the quarter with a net income of $84.6 million. In the same period last year, Providence recorded a net loss of $1.1 billion. Last year's net loss was largely attributed to negative financial market forces.