Nonprofit hospitals are required by state and federal law to forgive medical bills for low-income patients and invest in their communities.  

Providence hasn’t been playing by the rules. 

Providence doesn’t just have a poor track record of opposing comprehensive reproductive and gender affirming care, they have also been sued in Washington for attempting to squeeze payments from patients who qualified for free or discounted medical care. They are currently under investigation for similar actions in Oregon.  

Providence’s practices hurt patients—and communities.

 

In February of 2022, the WA state attorney general filed a consumer protection lawsuit against Providence. The suit alleged that Providence trained staff to aggressively ask for payment from low-income patients who were likely eligible for financial assistance and knowingly sent these patients — including Medicaid enrollees — to debt collectors. In February 2024, Providence agreed to a $158 million settlement, the largest resolution of its kind in the country. The refunds and debt relief will help nearly 100,000 Providence patients who were improperly billed.  

 

The Oregon Department of Justice is also conducting its own ongoing consumer protection investigation into Providence’s practices. A 2024 legal filing noted that, “DOJ has reason to believe that Providence has failed to comply with Oregon law, and that the number of impacted patients and the amounts involved are significant.” In fact, Providence’s underspending on community benefits even stands out nationally. In 2024, the nonpartisan Lown Institute estimated that Providence’s tax exemption exceeded their spending on community investments by 1 billion dollars – the second highest “fair share deficit” in the nation. 

What are your health system’s values?

 

- Seattle Times Editorial Board 


“The Providence mission states: ‘As expressions of God’s healing love, witnessed through the ministry of Jesus, we are steadfast in serving all, especially those who are poor and vulnerable.’ Medical ethics aside, such a mission statement makes the flouting of financial obligations to the poor and vulnerable all the more unconscionable.” 


"[I]t is particularly galling to consider that the latest settlement involves taking advantage of extremely vulnerable people — low-income medical patients. And it is particularly disappointing to think that it comes from an organization tasked with carrying on a sterling legacy. The guess here is that Mother Joseph would not approve of Providence’s corporate actions." 


“The hospital system harangued sick patients in the emergency departments and inappropriately sent more than 54,000 patients to debt collection. While this was going on Providence was hoarding $300 million in cash set aside in Providence Ventures to lend out for high-risk investing in hopes of raking in more profits.”