Providence reports positive Q3 2025 results

The not-for-profit health system’s third-quarter performance marks the continuation of a financial turnaround, delivering a positive operating margin after years of external headwinds. 
 
RENTON, Wash., Nov. 13, 2025 – Providence St. Joseph Health, a not-for-profit health system serving the Western U.S., today announced results for the three months ended Sept. 30, 2025. The health system reported a positive net operating margin, executing on the continuation of a financial turnaround. Providence leaders emphasized there is still more work ahead as significant market and regulatory pressures persist, including the anticipated impacts of H.R.1. 
 
“Thanks to the dedication of our caregivers and a commitment to focus and discipline, we are seeing meaningful improvements in our performance. At the same time, the passage of H.R.1 and other external pressures continue to challenge the entire health care sector. These headwinds reinforce the urgency of our transformation and our commitment to adapt, so we can sustain our Mission and ensure continued access to high-quality care in the communities we serve,” said Providence CFO Greg Hoffman. 
 
For the three months ended Sept. 30, 2025, Providence reported growth in operating revenues, primarily attributable to higher volumes compared to the prior year, with inpatient admissions up 5 percent and case mix adjusted admissions up 4 percent. Excluding operating revenues and expenses from Home and Community Care divestures and partnerships, operating revenues of $8 billion were 6 percent higher, driven by increased volumes and improved rates, while operating expenses were up 3 percent, driven by costs associated with serving higher patient volumes. The system continued to experience improvements in labor productivity due to a reduction of temporary agency personnel and long-term sustainability initiatives. 
 
Operating EBIDA was $406 million, representing an improvement of $60 million and $241 million from the prior quarter and year, respectively. Net operating income was $21 million, representing an improvement of $42 million and $229 million from the prior quarter and year, respectively. Financial market results drove investment gains of $151 million for the three months ended Sept. 30, 2025. Remaining steadfast to the Mission, for the nine months ended Sept. 30, 2025, the health system invested $1.5 billion in community benefit.  
 
“When we started the year, we intentionally set out to reach a breakeven financial sustainability goal. It has taken a tremendous amount of hard work and decisive action from everyone across Providence St. Joseph Health, and that effort is starting to make a real difference. We must remain steadfast. While there’s more work ahead to secure our Mission for the long term, it’s important to pause and take stock of how far we’ve come. I am deeply grateful to every caregiver, physician and leader who has contributed to this turnaround while continuing to care for every patient with excellence and compassion. I am more confident than ever that, together, we will achieve our strategic imperative to be the best place to give and receive care,” said Providence President and CEO Erik Wexler.   
 
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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 1,000 physician clinics, senior services, supportive housing and many other health and educational services, the health system and its partners employ more than 122,000 caregivers serving communities across 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.