About PH&S

About Providence Health & Services
Providence Health and Services was formed on January 1, 2006 by the merger of Providence Health System and Providence Services. The company is now a 5-state, 26-hospital, 47,000-employee system which operates in Alaska, Washington, Montana, Oregon, and California.

Operations

Including its large acute care hospital business, Providence Health & Services operates:

• 26 acute care hospitals
• 20 controlled fundraising foundations
• 12 low-income housing projects
• 7 homecare and hospice agencies,
• 6 assisted living projects
• 6 long term care facilities,
• 2 programs of all-inclusive care for the elderly,
• a children’s nursing center and Montessori school
• a health services contractor
• a high school
• a preferred provider organization
• a university
• a for-profit Cayman Islands insurance entity,
• and several other healthcare related businesses.

Finances

Providence Health and Services is the richest healthcare corporation in the west, with $4.23 billion in net assets, including more than $2 billion in cash and investments. In 2006, Providence Health & Services earned $267 million from operations and an additional $189 million from investments and other non-operating sources for a total profit of $457 million. This is a 26% increase from 2005.

ProvidenceWatch has compiled available audited finanical statements from Providence Health System and Providence Services dating back to 1997. Operating profit, total profit, and net assets have all soared in recent years.

Click on the small charts below for full-size versions:

The largest west coast-based hospital corporations
	Providence Health & Services	Sutter Health	Catholic Healthcare West
Total Revenue 2006	$6.01 billion	$7.26 billion	$6.91 billion
Total Income 2006	$457 million	$587 million	$438 million
Total Profit Rate 2006	7.6%	8.8%	5.7%
Net Assets at end of FY	$4.23 billion	$3.96 billion	$3.28 billion
SOURCES: 2006 Audited Financial Statements, Providence Health & Services, Year ended 12/31/2006, Sutter Health. Year ended 12/31/2006, and Catholic Healthcare West, year ended June 30, 2006

Sponsorship and Corporate Structure

Providence Health and Services is sponsored by the Sisters of Providence, Mother Joseph Province, a congregation of Catholic women religious. Two of its Southern California facilities – in Torrance and San Pedro – are co-sponsored by the Little Company of Mary Sisters.

The company is governed by a 15 member board of directors dominated by leadership of the former Providence Health System. Kay Stepp, former Providence Health System board chair, now heads the merged board.

Most top system-wide executive positions are now occupied by former PHS executives, including Chief Executive Officer (John Koster), Chief Administrative Officer (Jan Jones), Chief Financial Officer (Mike Butler), and Chief Regional Operations Officer (Greg Van Pelt).

Providence Health and Services officials occupy key national hospital industry jobs. The chair of the Catholic Health Association is Sister Karin Dufault, S.P. , former chair of the board of directors at PHS. Former Providence Services President and CEO Richard Umbdenstock began working as the President of the American Hospital Association on January 1, 2007.