The health system’s sustained performance helps build financial resilience as H.R. 1 healthcare funding reductions approach
RENTON, Wash. [Nov. 13, 2026] — Providence St. Joseph Health, a not-for-profit health system serving the Western U.S., today announced continued positive operating results for the nine months ended Sept. 30, 2026.
Providence generated $178 million in operating income through Sept. 30, compared with an operating loss of $172 million during the same period in 2025, a $350 million improvement.
The results were driven by operational improvements across the health system, including higher patient volumes, shorter lengths of stay and reduced reliance on costly agency staffing.
“These results reflect the tremendous work of our caregivers and the thoughtful, disciplined actions we have taken together to strengthen Providence,” said Erik Wexler, president and CEO of Providence. “We are encouraged by our continued progress, but we also know H.R. 1 will bring significant reductions and changes to healthcare funding. Building greater financial resilience now will help us prepare for these headwinds while continuing to invest in our caregivers, ministries and the communities we serve.”
For the nine months ended Sept. 30, 2026, Providence reported higher patient volumes compared with the prior year, with inpatient admissions up 4% and case-mix-adjusted admissions up 5%. Operating revenues of $23 billion were 5% higher, while operating expenses increased 4%, reflecting costs associated with serving higher patient volumes, pharmaceuticals, wages and benefits.
Operating EBIDA for the first nine months of 2026 was $1.3 billion, representing a $353 million improvement compared with the prior year.
Financial market results drove net investment gains of $192 million for the nine months ended Sept. 30, 2026.
Remaining steadfast in its Mission, Providence invested $1.6 billion in community benefit during the first nine months of 2026, strengthening access to care and supporting the health and well-being of local communities.
“It is a privilege to be joining Providence at such an important moment, and I am impressed by the progress that has been made,” said Kevin L. Smith, who joined Providence as executive vice president and chief financial officer on Oct. 26 from SSM Health. “The work that has been done to date will help us weather the impact of H.R. 1 and other challenges ahead. My focus is to help build on that progress so the Providence Mission can continue to flourish for generations to come.”
