News: Providence St. Joseph Health Group has $714 million operating loss for 2021

After a more than $300 million loss in 2020, California-based Providence St. Joseph Health Group reported $714 million in net operating loss for 2021, according to a released statement with their earnings report. Noting 2021 was “an unprecedented year, marked by three major surges in COVID-19 volumes, a national shortage of health care personnel, as well as deferrals of non-emergent care,” Providence said its recovering volumes and expects growing demand due to deferred care.

“Throughout this time of need, Providence continues to be here for our communities,” the statement reads. “We are deeply grateful to our caregivers for their commitment to the mission and all they do is help us serve those who are most vulnerable. We are incredibly proud that we continue to increase our community benefit levels amid the challenges of the pandemic.”

Providence’s case-mix adjusted admissions increased by 7% from 2020 to 2021. This increase was driven largely by outpatient visits, admissions, emergency room visit increases, and surgeries. There was also an increase in operational expenses (from $25.98 billion in 2020 to $28.04 billion in 2021) which was caused by higher costs of serving returning patients, as well as a 10% increase in salary and benefit expenses, and 9% increase in supply expenses.

Editor’s note: The Providence St. Joseph Health Group’s financial report can be found here. The associated statement can be found here.