Providence reports Q1 2024 results
With a continued focus on strategies for recovery and renewal, the not-for-profit health system reported a positive first quarter.
RENTON, Wash., May 17, 2024 – Providence, a not-for-profit health system serving the Western U.S., today announced results for the three months ended March 31, 2024. The report showed significant improvement in operations, with an 11 percent growth in net patient revenues and $176 million in net operating income.
“Thanks to the dedication of our caregivers, Providence continues to meet the growing needs of our communities with high-quality, compassionate care. Together, we are navigating the headwinds facing health care by focusing on our strategies for recovery and renewal. We expect the positive momentum to continue throughout the year and are excited for a strong 2024,” said Providence CFO Greg Hoffman.
Providence experienced higher volumes in the three months ended March 31, 2024, versus 2023, with inpatient admissions up 3 percent and case mix adjusted admissions up 4 percent. Excluding one-time gains, net operating revenues were up 8 percent compared to the prior year, driven by higher volumes and improved reimbursement rates.
For the three months ended March 31, 2024, EBIDA of $549 million and net operating income of $176 million represent an improvement of $523 million and $521 million respectively, compared to the prior year. The health system also strengthened its cash position from the Q1 sale of Acclara, a revenue-cycle company owned by Providence, and the sale of laboratory services.
“These transactions represent our strategies to diversify and deconstruct the traditional model of health care through partnerships, allowing Providence to expand access to care, become more nimble and collaborate with others to better serve our patients, caregivers and communities in a more affordable way,” Hoffman said.
Financial market results drove investment gains of $205 million for the first quarter, compared with $259 million in the prior year, bringing Providence’s total unrestricted cash and investments to $8.6 billion as of March 31, 2024.
Remaining steadfast to the Mission, for the three months ended March 31, 2024, the health system invested $410 million in community benefit.
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About Providence
Providence is a national, not-for-profit Catholic health system comprising a diverse family of organizations and driven by a belief that health is a human right. With 51 hospitals, more than 1,100 physician clinics, senior services, supportive housing, and many other health and educational services, the health system and its partners employ more than 124,000 caregivers serving communities across seven states – Alaska, California, Montana, New Mexico, Oregon, Texas, and Washington, with system offices in Renton, Wash., and Irvine, Calif. Learn about our vision of health for a better world at Providence.org.