TOLEDO, Ohio — ProMedica posted a $23.7 million operating income for the first quarter of 2023 -- a welcome sign for a company that has experienced immense financial stress in the last couple of years.
The Toledo-based healthcare company announced first quarter results Monday afternoon for the three-month period ending March 31. You can view the entire report here.
According to the report, the increase in operating income for the quarter was driven by the Provider division, but all lines of business improved compared to the same period last year. The first quarter also included $62.9 million of "transition fee income" from Anthem for the Paramount Advantage transaction.
There was also a one-time gain of $50 million in "other revenue."
"For the first quarter of 2023, we are pleased to report financial improvement in all ProMedica business lines over the prior year," ProMedica spokeswoman Tausha Moore said in a statement. "The improvement reflects our diligent focus on managing our operational portfolio and making decisions that support a stable and sustainable organization. It is also a testament to the hard work and dedication of employees all across our organization as we continue to navigate industry challenges. While there is still more work to be done, we remain confident that we are moving in the right direction and look forward to continuing that momentum."
This was the first quarter ProMedica posted an operating income since the second quarter of 2020 when the company reported an operating income of $189.4 million.
ProMedica lost hundreds of millions in 2021 and 2022. Last year, the company reported operating losses of $126 million in the first quarter, $155 million in the second, $77.5 million in the third and $346 million in the fourth.
70% of the company's 2023 first-quarter revenue was generated by the Provider division, which generated an operating loss of $6.6 million compared to a loss of $45.5 million for the first quarter last year. Net patient service revenue increased by $28.8 million and operating expenses decreased by $19.4 million.
ProMedica is in the midst of significant restructuring and refocusing as it continues to navigate major financial problems.
Last week, Fitch Ratings downgraded ProMedica's credit rating for the second time in a year. That came just weeks after the company reported losses of about $350 million for the fourth quarter of 2022, adding to what was already a disastrous financial year.
ProMedica also announced last week it is selling its hospital in Coldwater, Mich. A new chief financial officer for the company -- Terry Metzger -- was also named.
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 also terminated a 10-year sponsorship agreement with the USGA for the U.S. Women's Open barely a year into the deal.
In March, ProMedica asked the city of Toledo and the county for more money to stage fewer shows for this year's summer concert series.
Nearly 300 people were laid off after the company divested from skilled nursing facilities earlier this year. 262 were announced in the first wave before 26 more in the second.
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