LUCAS COUNTY, Ohio — ProMedica is undergoing significant restructuring and refocusing brought on by major financial issues in the last few years.
Most recently, ProMedica sold its Coldwater Regional Hospital in Michigan to California-based American Healthcare Systems, citing "financial challenges" as the primary reason for the sale. The company also announced Terry Metzger as their new chief financial officer to oversee many of the new changes being made.
With hundreds of layoffs, hundreds of millions in losses and credit ratings being downgraded twice in nine months, here’s a look at ProMedica’s timeline of notable events in the last five years:
APRIL 2018: ProMedica purchases HCR ManorCare for $3.3 billion.
NOV. 2020: ProMedica donates $10 million to the Metroparks for Glass City River Wall.
FEB. 2021: ProMedica purchases building for Bitwise project for $1.2 million.
JAN. 2022: ProMedica announced as long-term presenting sponsor for U.S. Women’s Open.
FEB. 2022: ProMedica purchases naming rights for Glass City Center.
MARCH 2022: ProMedica reports a 2021 operating income loss of $136.3 million (including a $275.3 million loss in the senior care division) after posting a net income of $51.2 million in 2020.
MAY 2022: ProMedica reports first quarter operating income losses of $126 million; Fitch Ratings downgrades ProMedica’s overall credit rating from 'BBB+' to 'BBB-' and assigns a “negative” outlook.
MAY 2022: Randy Oostra no longer president of ProMedica, but remains as CEO; four other top executives are fired, including CFO Steve Cavanaugh.
JULY 2022: Paramount, ProMedica's insurance division, loses lucrative contract with the state of Ohio to provide Medicaid services.
JULY 2022: ProMedica lays off 150 non-clinical employees.
AUG. 2022: S&P downgrades ProMedica’s debt rating from 'BBB-' to 'BB+,' which is below investment grade.
AUG. 2022: ProMedica reports second quarter operating income loss of $155 million.
SEPT. 2022: Ohio Attorney General Dave Yost orders ProMedica to pay UTMC at least $3.7 million and threatens a lawsuit after ProMedica refuses to pay for a nursing program they agreed to fund; ProMedica eventually pays for the nursing program.
OCT. 2022: Oostra announces retirement.
NOV. 2022: ProMedica announces it will exit skilled nursing venture on Dec. 19, 2022.
NOV. 2022: ProMedica announces $87.3 third quarter senior care division loss.
JAN. 2023: ProMedica lays off 262 employees after divesting from skilled nursing facilities.
FEB. 2023: ProMedica sells hospice and home healthcare business to Gentiva for $710 million.
MARCH 2023: ProMedica asks the City of Toledo and Lucas County for more money to put on less summer concerts, adjusts payment structure with Lucas County for Glass City Center naming rights, pauses $10 million pledge to Glass City Metropark and River Wall project and pulls $60,000 in sponsorship money for Jeep Fest; ends 10-year agreement with USGA for U.S. Women’s Open barely a year into the deal.
APRIL 2023: 26 additional employees are laid off in relation to the skilled nursing home divestiture; company announces $346 million in losses for fourth quarter of 2022.
MAY 2023: Fitch Ratings downgrades ProMedica’s credit rating from 'BB+' to 'BB-'; ProMedica sells Coldwater Regional Hospital in Michigan; new chief financial officer named.
MAY 2023: ProMedica posts a $23.7 million operating income for the first quarter. This is the first time the company had a positive quarter since the second quarter of 2020.
MORE PROMEDICA NEWS FROM WTOL