Making strides in challenging times

These are incredibly challenging times for health care, and caregivers across the Providence family of organizations feel it every day on the front lines.

The national labor shortage has led to staffing pressures, access issues and longer lengths of stay. We continue to be affected by insurers denying or delaying adequate reimbursement for needed care. And we face ongoing increases in pharmaceutical and supply costs, and still contend with an antiquated U.S. payment model that rewards volumes over value.

Yet, thanks to everyone at Providence, we are making important strides and improving the health of our communities, together.

As we kick off the final quarter of the year, I want to acknowledge the caregivers of Providence and share how much we’ve accomplished in 2023. These highlights make me incredibly proud.

  • Providence provided nearly $2.1 billion in uncompensated care and other community benefit. Our 2022 annual report, released this summer, shows our largest investment in community benefit to date. We also continue to improve access to financial assistance and have been recognized for 100 best practices in patient financial interactions.

  • We are increasing access to care to meet the growing need. By the end of Q2, case mix adjusted admissions were up 6%, while inpatient and outpatient surgeries and procedures were up 7% and 17% respectively. By Q2, we also reduced length of stay by 2.3%, helping patients get home sooner while opening additional capacity. And a partnership with ambulatory surgery provider USPI will help create more access to care.

  • We’re supporting our caregivers. Though staffing remains a significant challenge due to the national labor shortage, we’re making progress on retention and recruitment, had a record year for hiring and made Forbes’ 2023 list of America’s Best Employers By State. We also expanded mental health and wellness resources for caregivers and invested in professional development through tuition-free education. We’re supporting bedside teams with virtual nursing, and using gig-workers to offset gaps and automated scheduling to create more flexibility. We’re also committed to fostering an inclusive workplace for all.

  • We operate the nation’s top accountable care organization, according to the Medicare Shared Savings Program. Providence Health Connect Partners — the seventh largest MSSP ACO in the country — generated the most savings for Medicare of any ACO, saving nearly $99 million for the Centers for Medicare and Medicaid Services last year.

  • We received more four- and five-star CMS ratings than other health systems nationally and reduced central line infections and sepsis mortality to our lowest rates in three years. We also garnered 296 high-performance ratings from U.S. News & World Report for a range of specialties.

  • We’re thoughtfully leaning into AI and other technologies. With Trial Connect, we're using AI to match patients with Providence’s more than 2,500 research trials. With MedPearl, we're leveraging AI to empower primary care physicians with curated data and more specialty knowledge. And we’re scaling remote patient monitoring and the hospital at home to deliver high quality care remotely.

  • We’re developing innovative services and solutions. Through Credena Health, we’re offering prescription home delivery and virtual pharmacy support. At the Providence Global Center in India, we’re supporting U.S. caregivers with world-class engineering to advance telehealth, cybersecurity, AI and other tech needs. We’re also collaborating with others on generic drug access and secure, ethical use of data.  

  • We celebrated the 150th anniversary of Providence St. Patrick Hospital in Montana, making it Providence’s oldest, continuously operating health care ministry. We also celebrated the grand opening of the Friese Family Tower in Southern California, a partnership with Cedars-Sinai.  

  • We have served more than 760,000 people as part of our commitment to health equity. Efforts include training and deploying community health workers and re-enrolling eligible patients in Medicaid. We are also reaching communities of color through partnerships with Stand Up to Cancer, and George Lopez, and innovative programs like the JUST Birth Network.  

  • We’re addressing the mental health and opioid crisis. Providence’s Well Being Trust awarded $5 million in grants to support crisis centers, pediatric behavioral health units, school-based telebehavioral health programs and other vital services. We are also partnering with professional sports teams to improve youth mental health and wellness.

  • Providence reduced greenhouse gas emissions from anesthesia by 78% last year and our overall carbon emissions by 11.5%. We also received the Practice Greenhealth Excellence Award for 29 of our hospitals this year, as well as the U.S. Laudato Si Champion Award for outstanding achievement.

  • Our more than 40 foundations set another record for philanthropy, raising $359 million last year. This beats our previous all-time high of $331 million. The record-breaking support from our communities is testament to how much donors believe in the Mission and the high quality, compassionate care we deliver.

Although we still have a journey ahead, we are moving in the right direction thanks to the caregivers of Providence. Together, we will ensure the Mission endures and thrives for generations. Thank you to all who make it possible for us to be here for our patients and one another, especially in these unprecedented times. I am deeply grateful for each of you.


Rod Hochman, M.D.


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