The operator of Kadlec Regional Medical Center reported improving financial circumstances for the third quarter of 2025, though its leaders anticipate headwinds that stress the need for continued diligence. 

Providence St. Joseph Health, which operates Richland’s Kadlec as well as St. Mary Medical Center in Walla Walla, indicated in its quarterly report that operating revenues outpaced the 3% growth in operating expenses. Operating earnings before interest, depreciation and amortization (EDIBA) was $406 million, an improvement of $60 million and $241 million compared to the prior quarter and year, respectively. 

“When we started the year, we intentionally set out to reach a breakeven financial sustainability goal,” said Erik Wexler, Providence president and CEO, in a statement. “It has taken a tremendous amount of hard work and decisive action from everyone across Providence St. Joseph Health, and that effort is starting to make a real difference.” 

Providence has divested itself of programs and partnerships, particularly from its Home and Community Care offerings, over the past several months to right its financial position. In the Tri-Cities, that included Kadlec transferring its Healthy Ages program to Generational Care, formerly known as Senior Life Resources Northwest, as Kadlec dissolved its Neurological Resource Center.  

In mid-October, Kadlec laid off the full-time equivalent of 5.5 staff working in physical, speech and occupational therapy at the Kadlec Healthplex. That followed Providence cutting 60 positions from its operations in and around Spokane in August. Providence officials have said those cuts were necessary amid financial pressures, particularly the cuts to Medicaid and loss of federal subsidies for Affordable Care Act marketplace insurance plans come to an end.