ProMedica attributes 'challenging' 2016 financials to Epic go-live, provider growth

For the first six months of 2016, Toledo, Ohio-based ProMedica posted a $1.9 million operating loss, compared to the same period last year in which the health system recorded a $42.7 million operating profit. The health system indicates costs related to its Epic implementation project and provider growth significantly affected its financial performance.

"ProMedica's operating performance for the first six months of 2016 has been challenging as significant expenses were incurred related to the Epic electronic health record implementation and provider growth," according to the health system's unaudited quarterly disclosure for the six-month period ended June 30.

ProMedica went live on Epic Nov. 2 but is still in the process of bringing additional hospitals onto the new EHR platform. On Nov. 1, 2016, four more hospitals will go-live on the platform, as well as 300 physicians in ambulatory and other acute care settings. The health system's full implementation is expected to be complete by May 1, 2017 with an upgrade expected in August 2017. In its quarterly disclosure, ProMedica reports training approximately 2,500 users on the Epic platform.

Overall, ProMedica reports the Epic EHR launch has a $19 million "impact" on its declining operating income for the first six months of the year.

The health system also noted increased salaries and benefits expenses due to provider growth contributed to the decline in operating income.

ProMedica did report a slight increase in total operating revenue: For the first half of 2016, the health system reported $1.6 billion in operating revenue, up $13.6 million from the same time period last year. Within that, though, net patient service revenue fell by about $15.5 million due to lower patient volumes.

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