November 28, 2022 – Providence (Renton, WA) closed all of its 27 Providence ExpressCare facilities on Nov. 17 after the Southern California retail clinics posted “unprecedented operating losses” amid labor shortages, inflation, supply chain disruption, lower-than-expected volumes and a more competitive retail clinic sector.
A spokesperson said that California patients will still have access to ExpressCare virtual services and can find same-day care at other urgent care clinics and primary-care facilities.
The health system separated from Hoag (Newport Beach, CA) earlier this year, which has hurt its balance sheet. Hoag represented 7% of the Providence’s operating revenues and 17% of the system’s unrestricted cash and investments, according to Fitch Ratings. Through the first nine months of Providence’s fiscal year ending Sept. 30, it reported a $1.1 billion operating loss on $19.6 billion of operating revenue. Hoag sued Providence in 2020 to dissolve the merger, claiming that Providence didn’t hold up its end of their population health initiative.