Providence, a not-for-profit health system based in Washington, on Tuesday reported a first-half net loss of $1.84 billion, as the industry's higher expenses and staff shortages plague another heath system.
The loss excludes the $3.41 billion impact of Providence’s disaffiliation from Hoag, a California-based healthcare network, earlier this year. Hoag filed a lawsuit in 2020, seeking to end its nearly decade-long partnership with Providence.
In reporting its performance, Providence said it plans to focus on core operations, such as surgeries, and lessen the use of contract labor, among other factors.
Last month, Providence cut its executive team, condensing its seven regional divisions into three, with plans to funnel cost savings toward resources for front-line workers.
Providence said Tuesday it is reassessing the services it provides “within the context of the current and expected future economic factors.” That could mean bringing on community partners to provide services, consolidating locations or closing them altogether, a spokesperson said.