TOLEDO, Ohio — ProMedica ended 2023 with an operating loss significantly less than in 2022.
The healthcare company posted a $4.6 million operating loss for the period of Oct. 1 to Dec. 31 of 2023 compared to a loss of $365.9 million in the same quarter the year before, according to a financial filing. In 2023 as a whole, ProMedica posted an operating loss of $44.5 million compared to $470.9 million in 2022.
A ProMedica spokesperson provided the following statement on the filing:
"With thoughtful cost reduction and increased operational efficiencies, we were able to make significant progress toward financial stability in 2023. While issues like rising expenses and insufficient reimbursements continue to strain the health care industry, our efforts over the past year have helped position us well to continue our positive momentum. We can now focus more time, energy and effort on our core health care operations, and we expect to continue making improvements that will help to ensure a successful 2024."
The refocusing on its core business as a regional hospital system, rather than on hospice and home health, was reflected in the outlook of bond rating agency Moody's, which upgraded ProMedica's bond rating in December from "negative" to "stable," citing the sale of hospice and home care divisions and the elimination of bank debt.
Two of ProMedica's three divisions have improved, according to the filing. The hospitals division in the fourth quarter of 2023 generated a $28 million operating income compared to a loss of $3.3 million in the year prior. Senior care lost $16.6 million compared to $355.8 million.
Paramount Health insurance generated about one-fifth of the income it had in the same quarter a year before, posting $3.7 million for 2023 compared to $15.3 million for 2022.
ProMedica in January announced it would sell the subsidiary to Medical Mutual, an Ohio-based health insurance company, in a sale expected to close by May 1. Medical Mutual said it expects to welcome Paramount employees into its organization when the transaction closes.
ProMedica did see multiple rounds of layoffs in other areas in 2023, though. After divesting from its money-hemorrhaging skilled nursing venture, the company laid off more than 250 skilled nursing employees.
There were also layoffs of skilled nursing support staff, non-clinical staff and administrative positions.
ProMedica in 2023 also sold individual locations and lessened financial contributions to and backed out of multiple community events and other commitments. It halved the 2023 lineup for the downtown ProMedica Live Summer Concert Series to four concerts due to its financial struggles and eventually canceled one.
Toledo City Council approved handing over the reins of the 2024 series to a Monroe, Mich.-based concert promoter.
EDITOR'S NOTE: This story has been edited to correctly reflect that ProMedica has refocused its core business on hospitals.