Following a positive second half of 2025, the health system continued its turnaround with $111 million in operating income in Q1
RENTON, Wash., [May 11, 2026] – Providence, a not-for-profit health system serving the Western U.S., today announced results for the first quarter ended March 31, 2026. After years of significant headwinds across the health care sector, Providence has been executing a focused turnaround strategy that has delivered its third consecutive quarter of operating gains, including $111 million in net operating income in Q1.
Over the past year and a half, Providence has taken deliberate steps to address the polycrisis facing health care in the U.S. by improving its operations, such as streamlining its leadership structure, reducing duplication of services, renegotiating commercial payer contracts and sharpening its focus on core services — including transferring ownership or partnering with others on non‑core services. In addition, Providence has improved access to care, length of stay, productivity, expense management and other key operating measures. Together, these efforts are helping Providence build a more resilient and affordable delivery model, one that is well positioned to continue serving local communities in an era of inflation and reduced reimbursement.
“I am deeply grateful for the momentum we have created at Providence,” said Erik Wexler, president and CEO. “As we have made changes to strengthen our operations, our caregivers have kept the focus exactly where it belongs — on delivering high‑quality, compassionate care for our patients. That commitment is paying off and allowing us to continue investing in our Mission, so we can be here for those who are most vulnerable for the long term.”
For the three months ended March 31, 2026, Providence reported growth in operating revenues, driven primarily by higher patient volumes, improvements in length of stay and increased productivity compared to the prior year. Inpatient admissions increased 5 percent, while case‑mix‑adjusted admissions also rose 5 percent. Operating revenues totaled $7 billion, up 6 percent year over year1, reflecting increased volumes and improved rates, while operating expenses decreased 1 percent.
Operating EBIDA and net operating income were $482 million and $111 million, respectively, representing improvements of $378 million and $360 million compared to the prior year. These results reflect operational improvements, revenue enhancement and expense management efforts undertaken across the system. Financial market performance generated investment gains of $34 million during the quarter.
Remaining steadfast to its Mission, Providence invested $526 million in community benefit during the first quarter of 2026.
“Thanks to the dedication of our 119, 000 caregivers and their commitment to focus and discipline, we have begun turning a corner — ensuring our Mission remains strong and Providence is well positioned to serve for the long term,” said Providence CFO Greg Hoffman.
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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 119,000 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]Normalized to reflect the formation of partnerships related to our Home & Community Care entities in the first quarter of 2025.
