ProMedica stops enrolling Medicaid members as losses top $100M

ProMedica froze enrollment in its managed Medicaid program as the Toledo, Ohio-based health system faces more than $100 million in losses due to the plan, according to The Blade.

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ProMedica’s CFO Steve Cavanaugh said during a Nov. 21 conference call with bondholders and analysts that the health system “instituted a new membership enrollment freeze on Medicaid. We’ll keep the freeze until we resolve the [reimbursement] rate issue,” he said.

ProMedica said in June it would consider eliminating the plan, called Paramount, if it continued to operate unsustainably. Financial data reviewed by The Blade showed the health system’s operating income fell $102.8 million in the first nine months of fiscal 2019 due to Paramount. That’s compared to an operating gain of $26.8 million a year prior.

The plan serves roughly 240,000 managed Medicaid members.

Read more here.

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