Toledo, Ohio-based ProMedica reported an operating loss of $44.5 million in 2023, a 91% improvement on the $470.9 million loss in 2022 with all business lines improving year over year, according to financial documents published Feb. 29.
Revenue for the 11-hospital system decreased 2.6% year over year to $3.3 billion while expenses dropped 4% to $3.1 billion. Labor costs increased 2.6% to $1.5 billion.
In 2023, 77% of total operating revenue was provided by ProMedica's provider division, 15% by its insurance business and 8% by its senior care division.
After factoring in nonoperating items, such as investment returns, ProMedica ended 2023 with a $176 million, a significant improvement on the $912.9 million net loss posted the previous year.
On Nov. 1, ProMedica repaid the remaining $380 million of privately placed debt using the net proceeds from the sale of its home health, palliative and hospice business. Total debt, including finance leases, was $1.8 billion in 2023, down from $2.3 billion in 2022.
As of Dec. 31, ProMedica had $858.4 million of unrestricted cash and investments to fund operational and capital expenditures.
"With thoughtful cost reduction and increased operational efficiencies, we were able to make significant progress toward financial stability in 2023," the health system said in a statement shared with Becker's. "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."