Providence, a not-for-profit health system operating in the Western US, has reported a 9% increase in net operating revenues for the fiscal year (FY) ended 31 December 2023.
The financial performance for the reported period was highlighted by a $755m improvement in earnings before interest, depreciation, and amortisation (EBIDA), reaching $502m.
Providence has attributed this increase in figures to a higher demand for patient services and shorter hospital stays, as access to post-acute care improved in the latter half of FY23.
Despite facing challenges, such as inflation, healthcare worker shortage, and delayed reimbursements from payers, Providence said it continued to invest in community benefit activities.
The company reported higher patient volumes in FY23, with a 4% rise in acute adjusted admissions and a 5% increase in case mix adjusted admissions.
For FY23, the deficit of revenue over expenses from operations stood at $1.2bn.
During the year, the health system dedicated $2.1bn to community benefits, which included $1.4bn in unpaid Medicaid costs and $240m in charity care, marking a $600m increase since 2019.
During the fourth quarter (Q4) of FY23, EBIDA stood at $164m, with a deficit of revenues over expenses from operations reported to be $314m, representing a $389m and $287m improvement, respectively.
Providence president and CEO Rod Hochman said: “Despite continued economic and workforce challenges, we ended the year on a positive note, providing strong momentum going into 2024. Providence remained committed to the mission by serving our communities, especially those who are most vulnerable.”
Financial markets contributed to Providence's stronger financial position, with investment gains of $652m for FY23, a significant increase from the $1bn loss experienced in the previous year.
As a result, Providence's total unrestricted cash and investments were valued at $8.4bn at the end of 2023.
Entering 2024, Providence said its financial standing has been strengthened by cash inflows from the 340B Drug Pricing Program remedy payment and the sale of Tegria’s Acclara and Advata subsidiaries, which added ten days' worth of cash on hand to the balance sheet.
Providence recently opened a new office facility in Hyderabad, in the Indian state of Telangana.
