People often ask me, “Why do you need philanthropic support for hospitals and health care?”
It’s true, health care is big business. According to the American Hospital Association, in 2020, health care accounted for 19.7% of the US gross domestic product (GDP).
But what many people do not realize is that 76% of health care providers in the United States are nonprofits. As such, they must provide a great deal of free care to the poor and vulnerable.
In 2021 alone, Providence and its affiliated organizations provided more than $1.9 billion in uncompensated care and community benefit—an increase of $366 million more than pre-pandemic levels—while also enduring three major COVID surges, a national shortage of health care personnel and deferrals of non-emergent care which would have provided needed revenue.
Even in the best of times—which 2021 clearly was not—health care margins are increasingly thin. At Providence, we ended our year with a net operating loss of around $700 million, as higher costs related to the pandemic outpaced reimbursement from payers.
But interestingly:
We had our best year ever in philanthropy—raising more than $331 million across our 40+ foundations—thanks to the incredible generosity of our 53,000+ donors.
Where does that money go?
Philanthropic support funds important research projects and endows chairs. It enables the purchase of state-of-the-art equipment and helps build new and expanded care facilities. It funds innovation and technology and effects meaningful progress toward making world-class health services accessible for everyone, especially those who are most vulnerable.
At Providence, we firmly believe that health care is a human right, and every person should have access to the best possible care. We work collaboratively to develop patient-centered practices that help make lifelong quality care accessible and affordable.
Donors help Providence invest in our communities for their brightest futures, helping us provide care that values and nurtures every person, helping them heal and live well.
Reach out if you’d like to learn more. Laurie.Kelley@Providence.org
