ProMedica posts $234.7M profit

ProMedica, a 12-hospital system based in Toledo, Ohio, posted a net income of $234.7 million in the second quarter of 2020, according to recently released financial documents. 

It had a net loss of $22.3 million in the same period a year ago. 

In the quarter ended June 30, the health system recorded revenue totaling $1.75 billion, up from $1.72 billion recorded in the same quarter last year. 

ProMedica saw its net patient service revenue drop 17.7 percent to $986.7 million in the second quarter compared to last year. ProMedica said the patient service revenue decline was related to the suspension of elective care amid the coronavirus pandemic. 

Overall, the system recorded an operating income of $189.4 million in the second quarter. This compares to an operating loss of $18.1 million in the same quarter last year. 

ProMedica attributed the operating income improvement year over year to the performance of its Paramount division, which provides managed care plans to about 213,000 low-income residents within the state of Ohio. In addition, ProMedica said provider relief aid from the Coronavirus Aid, Relief, and Economic Security Act helped offset lost patient revenue that resulted from the pandemic. ProMedica said it received $240 million of CARES Act funding in the second quarter.

ProMedica's expenses decreased in the three-month period ended June 30 to $1.5 billion, down from $1.7 billion in the same period in 2019. 

"The COVID-19 pandemic has adversely impacted the system’s revenue and operating results for the three- and six-month period ended June 30," ProMedica said. "While it is not possible to estimate the length or full financial impact of the pandemic, management expects adverse effects on operations to continue beyond the end of the second quarter."

Read the full report here

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.