Providence reports year-end 2025 results
Q4 performance marks second consecutive quarter of operating gains
RENTON, Wash., [March 26, 2026] – Providence, a not-for-profit health system serving the Western U.S., today announced results for the fiscal year ended December 31, 2025. Fourth-quarter performance delivered a second consecutive quarter of positive operating margin, with fourth-quarter results presented on a pro forma basis¹. The health system’s continued improvement helped narrow operating losses for the full year and demonstrated ongoing momentum in Providence’s financial turnaround.
“I am incredibly proud of the progress we made in 2025 and the commitment our physicians and caregivers bring every day to our Mission,” said Erik Wexler, president and CEO of Providence. “Our results reflect not only improved operating performance but also an intentional strategy to transform our operating model. Over the past year, we have integrated previously siloed functions, streamlined leadership structures, and refined and focused our portfolio on core services, allowing us to direct more resources to the front lines of patient care. These actions are positioning Providence for long-term sustainability and a strong trajectory into 2026.”
Fourth quarter results were primarily driven by higher revenues from increased demand for patient services, partially offset by costs associated with higher volumes. Operating EBIDA for the fourth quarter totaled $477 million, compared with $65 million in the fourth quarter of 2024. Net operating income for the fourth quarter was $97 million¹, compared with a net operating loss of $253 million in the fourth quarter of 2024.
For the full year, inpatient admissions increased 4 percent compared to the prior year, with case-mix-adjusted admissions up 3 percent. Operating revenues increased 5 percent, driven by higher patient volumes, improved reimbursement rates and reduced length of stay. Operating expenses increased 4 percent as the system served more patients amid continued external headwinds and cost pressures.
EBIDA for the full year totaled $1.3 billion, representing a $271 million improvement over 2024¹. The net operating loss for the year narrowed to $132 million, a $231 million improvement from the previous year¹. Meanwhile, core operating metrics continued to improve.
Financial market performance generated investment gains of $430 million during the year, helping bring Providence’s total unrestricted cash and investments to $8.4 billion as of December 31, 2025. In the fourth quarter of 2025, Providence strengthened its balance sheet by increasing days cash on hand (DCOH) by 14 days compared to the prior quarter. This improvement will help accelerate Providence’s strategy and investments in local communities in 2026.
Remaining steadfast to its Mission, Providence invested $2.1 billion in community benefit during 2025, supporting access to care and essential services across the communities it serves.
“Throughout 2025, our teams demonstrated strong financial discipline and operational focus,” said Greg Hoffman, chief financial officer of Providence. “We managed expenses responsibly, improved productivity and continued to enhance the efficiency of our care delivery. These efforts helped us navigate reimbursement, regulatory, inflationary and workforce pressures while supporting high-quality care for the communities we serve.”
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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 120,000 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.
[1] Pro forma results are normalized for restructuring costs and other items, including assets held for sale and an actuarial true-up recorded in the fourth quarter of 2025 for benefit cost activity from earlier in the year.