Providence gets boost from Medicaid expansion
Providence Health & Services saw operating margin gains last year as it treated more patients and reduced its bad debt, particularly in states that expanded their Medicaid programs.
The Renton, Wash.-based provider operates in five states, three of which expanded Medicaid eligibility. Its hospitals saw a 26% increase in Medicaid patients overall, and gross revenue from Medicaid increased 47% in Washington and 52% in Oregon.
Although the cost of unpaid care for Medicaid beneficiaries rose to $444 million in 2014, up from $404 million the previous year, the system provided less charity care. The system said charity care fell to $205.6 million in 2014 versus $312.8 million in the previous year. In total, Providence posted an operating surplus of $219.2 million on revenue of $12.5 billion for 2014, compared with an operating surplus of $37.7 million on $11.1 billion in revenue the previous year.