Renton, Wash.-based Providence health system reported a net loss of $1.1 billion in the first quarter of 2020, driven by an operating loss of $276 million and a non-operating loss of $837 million, according to financial filings.
Higher operating expenses were behind most of the operating loss, while investment losses of $763 million led to the high non-operating losses, according to Providence.
A year earlier, Providence reported net income of $543 million, an operating loss of $4 million and a non-operating gain of $547 million.
Although the funds arrived after the quarter had ended, Providence outlined the relief funds it was allocated in April. The Coronavirus Aid, Relief and Economic Security Act provided approximately $509 million in grants, Providence's filing states. It also received $1.6 billion in advance payments from Medicare under the CMS Advance Payment Program.
The system also said that two of its top executives, CEO Rod Hochman and President of Operations Mike Butler volunteered to take temporary 50% pay cuts while the other officers are taking 10% to 20% cuts. In 2017, Hochman received total compensation of about $10.5 million in 2017, while Butler's total compensation was $4.6 million, according to IRS Form 990s on file with Guidestar.org.