Providence Pledges $600M for Staff Pay in 2026 Strategic Plan

The investment is part of Providence’s 2026 strategic overview, which aims to streamline operations, improve caregiver experience, and modernize care settings.

Providence Health System announced a $600 million commitment for staff pay in 2026, encompassing merit and market adjustments for its 125,000 caregivers, CEO Erik Wexler said in a Jan. 5 internal message shared with Becker’s.

The investment is part of Providence’s 2026 strategic overview, which aims to streamline operations, improve caregiver experience, and modernize care settings. “Removing barriers that get in the way of meaningful work is a first step and one of my top priorities,” Wexler wrote, highlighting improvements to the Caregiver Service Portal and ticketing processes.

Providence operates 51 hospitals, more than 1,000 clinics, and a range of health and social services across seven states. The pay increase comes after 2025 restructuring measures that included workforce reductions, service line changes, and the closure of four occupational medicine clinics in Portland, Ore. In June 2025, a restructuring plan impacted 600 full-time equivalent positions across seven states.

Wexler characterized the current environment as a “polycrisis” driven by overlapping economic, regulatory, and environmental challenges, stating that Providence focused on high-demand core services impacting community health.

Other elements of the 2026 strategy include professional growth initiatives, internal talent development, and equipment modernization. Providence is also expanding partnerships, such as the joint venture with Compassus for home health and hospice services. Additionally, the health system plans to increase the adoption of ambient technology to reduce documentation burdens.

“Healthcare needs even more attention on culture and our caregivers,” Chief People Officer Greg Till said in a Jan. 7 interview. “Our clinical caregivers are physically, mentally, and spiritually giving of themselves every day. At Providence, we’re making a big commitment in 2026 and beyond to revitalizing culture.”

The organization’s strategy signals a renewed focus on workforce development, aiming to improve caregiver satisfaction and restore the joy of practice following several challenging years.

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