Providence has seen an 8% surge in net operating revenues in the first quarter (Q1) of 2024, compared to the same period last year.
The company has attributed this growth in net operating revenues, which excludes one-time gains, to increased patient volumes as well as enhanced rates of reimbursement.
The first quarter ended 31 March 2024 marks a notable operational upturn for Providence, with an 11% rise in net patient revenues.
During the reported quarter, Providence saw a 3% increase in inpatient admissions and approximately 4% rise in case mix adjusted admissions.
The health system's earnings before interest, depreciation and amortisation (EBIDA) stood at $549m, while its net operating income reached $176m, reflecting improvements of $523m and $521m, respectively, as against the previous year’s Q1.
The financial strength of Providence was further bolstered by the Q1 sale of its revenue-cycle management company Acclara, along with the divestiture of its laboratory services.
Providence’s financial markets activities also yielded investment gains of $205m for the reported quarter, a slight decrease from $259m in the Q1 last year.
Consequently, its total unrestricted cash and investments escalated to $8.6bn as of 31 March 2024.
Aligning with its mission, Providence dedicated $410m to community benefits in the three months.
Providence CFO Greg Hoffman said: “Thanks to the dedication of our caregivers, Providence continues to meet the growing needs of our communities with high-quality, compassionate care. Together, we are navigating the headwinds facing health care by focusing on our strategies for recovery and renewal.
“We expect the positive momentum to continue throughout the year and are excited for a strong 2024.
“These transactions represent our strategies to diversify and deconstruct the traditional model of health care through partnerships, allowing Providence to expand access to care, become more nimble and collaborate with others to better serve our patients, caregivers and communities in a more affordable way.”
In March this year, Providence reported a 9% increase in net operating revenues for the fiscal year ended 31 December 2023.
