ProMedica trims operating loss to $12.5M

Toledo, Ohio-based ProMedica saw its operating performance improve in the first half of 2018, according to recent unaudited bondholder documents.

The 13-hospital nonprofit system's operating revenue grew to $1.7 billion in the six months ended June 30, up from $1.5 billion recorded in the first half of 2017. ProMedica's health plan, Paramount Health Care, now accounts for 50 percent of ProMedica's operating revenue. The health plan saw membership revenue climb $116.3 million due to more Medicaid enrollees and premium increases. In addition, the system's recent acquisition of a dental insurance company at the end of 2017 boosted membership revenue by $32.5 million.

ProMedica's total operating expenses climbed to $1.7 billion in the first half of 2018, up from $1.5 billion reported in the same period last year. The health system said salaries and benefits, as well as medical expenses related to additional Medicaid members and its dental insurance deal, contributed to the increase.

ProMedica's operating performance improved $3.5 million in the first half of 2018, but the system still posted a $12.5 million operating loss, compared to a $16 million loss in the first half of 2017.

After including nonoperating losses, ProMedica ended the six-month period $15 million in the red, compared to net income of $82.8 million in the first half of last year.

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