Providence reports year-end 2024 results

The health system improves access to care while continuing to practice operational focus and discipline. 

RENTON, Wash., Mar. 6, 2025 – Providence, a not-for-profit health system serving the Western U.S., today announced results for the fiscal year ended December 31, 2024. The results show Providence continuing to improve access to care in local communities with higher patient volumes and reduced length of stay despite ongoing headwinds. 
 
“We are proud that Providence continues to serve more people in need year over year even as macroeconomic and regulatory pressures continue. While we have made significant progress on our renew and recovery strategies post-COVID, we are not taking it for granted and are practicing continued operational focus and discipline to ensure long-term sustainability, which will position the ministry to thrive for years to come,” said Providence CFO Greg Hoffman. 
 
For the fiscal year ended December 31, 2024, Providence experienced higher volumes compared to the prior year, with inpatient admissions up 4 percent and case mix adjusted admissions up 5 percent. Operating revenues were 7 percent higher, driven by the increased volumes and improved reimbursement rates, while operating expenses were up 5 percent. 
 
Pro forma operating EBIDA for the fiscal year ended December 31, 2024 and deficit of revenues over expenses from operations, excluding restructuring costs, were $989 million and $461 million, respectively, with EBIDA representing a $487 million improvement to prior year and close to a billion dollar improvement in the last two years. This improvement occurred despite several headwinds across the year related to regulatory changes, strikes and much lower Medicare rate increases. Meanwhile, all core operating metrics continued to improve. Notably, agency spending was 70 percent lower than the peak in 2022 and case mix adjusted length of stay returned to pre-pandemic levels.   
 
Financial market results drove investment gains of $488 million for the fiscal year ended December 31, 2024, bringing Providence’s total unrestricted cash and investments to $8.2 billion as of December 31, 2024. 
 
Since year-end 2023, accounts receivable (A/R) has risen by $468 million or six net A/R days due to an increase in denials, underpayments and delays in paying claims. Providence is pursuing multiple technology, operational and legal tactics to lower A/R days. 
 
Remaining steadfast to the Mission, for the fiscal year ended December 31, 2024, the health system invested $1.9 billion in community benefit.  
 
New Providence President and CEO Erik Wexler, who took the helm on January 1, drove significant operational improvements in his previous role as chief operating officer. As CEO, he has set an organization-wide expectation for sharpened operational focus and discipline while also advancing Providence strategies to revitalize the practice of medicine, build the delivery model of the future through partnerships and lead the responsible use of AI to ease the administrative burden on clinicians and support clinical decision-making.