Through disciplined sustainability initiatives, the not-for-profit health system narrows the gap toward breakeven – while bracing for H.R.1 impacts
RENTON, Wash., August. 12, 2025 – Providence St. Joseph Health, a not-for-profit health system serving the Western U.S., today announced results for the three months ended June 30, 2025. The report reflects the significant progress Providence has made in responding to the polycrisis facing health care – including inflation, tariffs, new state laws on staffing and charity care, and ongoing denied or delayed payments from commercial insurers. However, the organization remains focused and disciplined in its efforts to ensure access to high-quality care in local communities, especially as it braces for the significant impacts of H.R.1, which threatens to intensify health care pressures.
“Thanks to the dedication of all our caregivers and the discipline we are bringing to our sustainability initiatives, we’re seeing meaningful improvements in our performance, bringing us closer to breakeven. 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 June 30, 2025, Providence experienced higher volumes compared to the prior year, with inpatient admissions up 3 percent and case mix adjusted admissions also up 3 percent. Operating revenues of $8 billion were 3 percent higher, driven by increased volumes and improved commercial rates, while operating expenses were up 2 percent, driven by costs associated with serving higher patient volumes. The system experienced improvements in labor productivity due to continued focus on staffing and reductions from expense management initiatives.
Operating EBIDA was $346 million, representing an improvement of $235 million and $87 million from the prior quarter and year, respectively. The deficit of revenues over expenses from operations was $21 million, representing an improvement of $223 million and $102 million from the prior quarter and year, respectively. Financial market results drove investment gains of $138 million for the three months ended June 30, 2025. Remaining steadfast to the Mission, for the six months ended June 30, 2025, the health system invested $1.1 billion in community benefit.
“I’m incredibly proud of the progress we’ve made and grateful to our caregivers and teams across Providence St. Joseph Health for their continued dedication. The strain remains, especially with emerging challenges like H.R.1, but we will continue to respond to the times and answer the call while transforming for the future. Guided by our Mission, our 2030 strategic direction offers a clear roadmap to becoming the best place to give and receive care, shaping the delivery model of the future, and driving purposeful innovation that brings positive change to our communities, especially for those who are most vulnerable,” 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 123,000 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.
