Providence swings to profit in 2019, after significant loss

Renton, Wash.-based Providence posted a net income of $1.36 billion in 2019, compared to a deficit of $445 million in 2018, according to recently released financial documents.

The nonprofit Catholic health system recorded revenue of $25.03 billion in the year ended Dec. 31, 2019, up 2 percent from the $24.43 billion reported in 2018.

The revenue increase was largely attributed to patient volume increases. Year over year, Providence reported a 3 percent rise in case mix-adjusted admissions and a 7 percent increase in home health visits.

Providence also saw its nonoperating revenue grow to $1.14 billion in 2019, compared with nonoperating losses of $448 million for the same period in 2018.

The system's operating expenses rose to $24.65 billion in 2019. This compares to $24.26 billion in 2018. Supply costs grew by 4 percent, but labor productivity decreased by 4 percent year over year.

Providence also reported costs related to restructuring of $159 million in 2019. In 2018, the system had $162 million in restructuring costs. 

Providence has 51 hospitals, more than 1,000 clinics and nearly 123,000 caregivers serving patients in seven states.

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