Providence Health & Services is still working to recover from last year's multibillion-dollar losses.
The Renton, Washington-based system on Monday reported a net loss of $232 million in the first half of 2023, compared with a loss of $5.24 billion in the year-ago period.
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Providence did not report the size of its second-quarter net loss but a spokesperson said it totaled $115 million. The system reported a net loss of $117 million in the first quarter.
Staffing shortages and more delays or denials on reimbursements contributed to the losses, Chief Financial Officer Greg Hoffman said in a news release. Last year's losses largely stemmed from its split from Southern California health system Hoag.
The operating loss was $202 million in the second quarter, compared with a loss of $424 million a year ago. Results included $103 million in investment gains.
Quarterly revenue came to $7.22 billion, up 12.4% year-over-year. Expenses rose 8.4% to $7.42 billion, largely driven by increases for salaries and benefits, pharmaceuticals and medical supplies.
Providence, which operates 51 hospitals and more than 1,000 clinics in seven states, was the latest nonprofit system to report higher patient volumes. The system said inpatient admissions increased 2% and non-acute volumes grew 6% in the first half of 2023, including a 17% jump in outpatient surgeries and procedures.
Cost-cutting has been top of mind for Providence. The system has worked to streamline functions and cut executive positions to limit overhead costs. It condensed seven regional divisions into three and continues to look to reduce discretionary spending and diversify revenue streams.
