The not-for-profit health system is taking steps to adapt its operations for a new reality of reduced reimbursement and higher costs
RENTON, Wash., June 12, 2025 — Providence, a not-for-profit health system serving the Western U.S., today shared an important update on efforts to strengthen access to high-quality, compassionate care in an era of reduced reimbursement and higher costs.
The Providence family of organizations implemented restructuring efforts this week that will reduce 600 full-time-equivalent positions from its total 125,000-person workforce across seven states. Where possible, affected individuals are being redeployed into other positions at Providence, which currently has more than 5,000 open roles. Transitional resources are also being provided to those who are impacted.
“We do not take decisions like this lightly and recognize that behind every role is a person, colleague, friend and caregiver whose contributions have helped carry out our Mission,” said Providence Chief Operating Officer Darryl Elmouchi, M.D. “These difficult but necessary steps are part of a comprehensive approach to financial sustainability that will enable our family of organizations to better reinvest in and revitalize the front lines of care, including the people, programs, equipment and facilities needed to serve our communities.”
The affected roles are primarily in non-clinical, administrative functions, though some patient-care roles are also impacted. Like other health systems, the Providence family of organizations is responding to multiple pressures facing health care, including proposed federal cuts to Medicare and Medicaid, ongoing denials and delayed payments from commercial insurers, higher labor costs due to new staffing laws in some West Coast states, and higher costs for pharmaceuticals and supplies due to inflation and tariffs.
The health system’s comprehensive approach to long-term sustainability includes minimizing variation and duplication, reducing discretionary spending and capturing revenue. As stewards of a nearly 170-year-old legacy, health system leadership said it will continue to evaluate its operations through the lens of its Mission, values and community needs, taking strategic steps that strengthen access to care, especially for those who are most vulnerable.
