Providence has seen about $1 billion in operational improvements from its restructuring and cost-cutting initiative since its launch, Chief Financial Officer Greg Hoffman told attendees at the J.P. Morgan Healthcare Conference Monday.
The system launched its Recover and Renew plan about three years ago, which CEO Erik Wexler previously said allowed the system to optimize its decision making. The plan includes reducing the system's use of contract workers and patients' length of stay, along with organizational restructuring, growing value-based care platforms and increasing provider partnerships.
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The system launched its restructuring plan in 2022.
Providence had a $6 billion net loss in 2022, including losses tied to its split from California health system Hoag, and a $596 million net loss in 2023. It reported a $155 million operating loss for the first nine months of 2024.
But Wexler in November said the system showed several hundred million dollars in operational improvements from 2022 to 2023, and the system is on its way to breaking even operationally.
Wexler said Monday the system is looking to increasingly partner with others, as "We can’t be all things to all people anymore."