TOLEDO, Ohio — ProMedica posted operating losses of nearly $350 million in the fourth quarter of 2022 as northwest Ohio's largest employer continues to face major financial difficulty.
The Toledo-based healthcare company saw losses of $346.4 million for the three-month period ending Dec. 31, according to financial information posted Friday afternoon. This follows operating losses of $126 million in the first quarter, $155 million in the second and $77.5 million in the third.
In Friday's disclosure, ProMedica claimed 2022 operating losses of $399 million. The divesture of over 100 money-losing skilled nursing facilities, which was finalized in December, was reclassified to "discontinued operations" and not factored into the year's total operating losses.
ProMedica recorded a positive operating income of $141.4 million in 2021.
"Undoubtedly, 2022 was a year of challenges and restructuring for ProMedica," Spokeswoman Tausha Moore said in a statement to WTOL 11. "As we continue to focus on positioning the organization for long-term financial stability and success, we are confident we are on a better path forward. We’re already starting to see progress in 2023, with financial and operational indicators improving, and we look forward to continuing that positive momentum."
Total operating revenue for the quarter was $1 billion, down 23.9% from the same period a year ago. ProMedica attributed the decline to its Paramount insurance division losing its lucrative Medicaid contract with the state of Ohio.
Paramount membership revenues dropped by $407 million compared to 2021.
Total operating revenue for 2022 was $4.1 billion, down 21% from the previous year.
Friday's disclosure was delayed twice in the last several weeks. The losses add to what was already a treacherous 2022 for the company.
ProMedica is in the midst of significant restructuring and refocusing as it continues to navigate major financial problems.
In recent weeks, the company asked Lucas County for a friendlier agreement for naming rights to the Glass City Center, suspended a $10 million donation to the Metroparks and $60,000 for Jeep Fest, and terminated a 10-year sponsorship agreement with the USGA for the U.S. Women's Open barely a year into the deal.
Last month, ProMedica asked the city of Toledo and the county for more money to stage fewer shows for this year's summer concert series.
In February, the company sold its home hospice and healthcare business to Gentiva for $710 million. This arm of ProMedica had been one of its most profitable.
Analysts say the company could use profit from the sale to pay certain debts.
Late last year, ProMedica left the national nursing home business when it divested from 147 money-losing skilled nursing facilities. Nearly 300 people have been laid off as a result.
Those facilities were the largest cause of financial losses last year.
RELATED VIDEO