Providence reports Q3 2024 results

November 26, 2024

The not-for-profit health system continued to improve performance while serving more people in need.

RENTON, Wash., Nov. 26, 2024 – Providence, a not-for-profit health system serving the Western U.S., today announced results for the three months ended September 30, 2024. The report showed improved operating results, driven by higher patient volumes, increased reimbursement, lower lengths of stay and reduced use of agency contract labor. 

“While macroeconomic pressures persist, including the national shortage of health care personnel and the rising cost of drugs and supplies, Providence has stayed the course on our renew and recover strategies, and as a result, our operating performance continues to improve in many of our local markets. We are grateful to everyone at Providence for their steadfast commitment to compassionate, high-quality care,” said Providence CFO Greg Hoffman.

For the three months ended September 30, 2024, Providence experienced higher volumes compared to the prior year, with inpatient admissions and case mix adjusted admissions both up 4 percent. Operating revenues were 6 percent higher, driven by increased volumes and improved reimbursement rates while operating expenses were up 4 percent.

Operating EBIDA in the third quarter was $165 million, and the deficit of revenues over expenses from operations was $208 million, representing an improvement of $61 million and $102 million, respectively, compared to the prior year. This brought operating EBIDA to $973 million and the deficit of revenues over expenses from operations to $155 million for the nine months of the year.

Financial market results drove investment gains of $248 million for the three months ended September 30, 2024, leading to a positive net income of $20 million, bringing Providence’s total unrestricted cash and investments to $7.8 billion as of September 30, 2024.

Since year end 2023, accounts receivable (A/R) has risen by $515 million or 7.4 net A/R days due to an increase in denials, underpayments and requests for information from payors. Providence is pursuing multiple technology, operational and legal tactics to lower A/R days with our payors.

Remaining steadfast to the Mission, for the nine months ended September 30, 2024, the health system invested $1.3 billion in community benefit.

“Just as we have for more than 165 years, our commitment to serving those who are most vulnerable has not wavered. The Mission of Providence is well positioned to endure and thrive for generations to come, and we continue to make important strides in advancing the healing ministry throughout our communities,” said Providence President and CEO
Rod Hochman, M.D.

[Note: Normalized for a one-time gain of $109 million recognized in the third quarter of 2023, operating EBIDA and the deficit of revenues over expenses from operations improved $171 million and $212 million, respectively, compared to prior year.]

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