Providence narrows operating loss in Q2, but challenges remain

Dive Brief:

Providence narrowed its operating loss in the second quarter, a sign to executives the health’s system’s multiple expense management initiatives are paying off.

The nonprofit recorded a $21 million operating loss for the second quarter of the year. It’s a $223 million improvement over the first quarter and a $102 million improvement over the same period last year.

Providence said in a release that disciplined spending and higher patient volumes have brought the system closer “breakeven.” Still, Providence ended the first half of fiscal 2025 at a $265 million operating loss.

Dive Insight:

The 51-hospital nonprofit health system hasn’t ended the year with a profit in four years.

Providence hoped to change that in 2025, but it’s faced what it calls a “ polycrisis .”