'Operational rigor' boosts ProMedica's Q3 margin to 4%, says CFO

Toledo, Ohio-based ProMedica reported operating income of $32.4 million (4% margin) in the third quarter, up from a $31 million loss (-4.2% margin) in the third quarter of 2023 as operating results for all lines of business continued to improve over the prior year.

Third-quarter revenue increased 10.4% year over year to $801.4 million while expenses grew by 1.4% to $731.8 million, according to financial results published Nov. 19. 

"We're very pleased with our financial progress through Q3," CFO  Terry Metzger said in a statement shared with Becker's. "The restructuring of our senior care and insurance divisions, coupled with sound operational rigor within our health system, has led to positive and sustainable results. This focused and disciplined approach underpins our daily operating activities and forward-looking planning processes."

Days of cash on hand was 133.3 as of Sept. 30, 2024, compared to 99.6 on Dec. 31, 2023. Long-term debt for the health system stands at $1.78 billion. 

After accounting for nonoperating items, such as investment returns, ProMedica reported a net income of $39.9 million in the third quarter, compared to a net loss of $78.9 million in the same period last year. 

ProMedica operates 11 hospitals and holds a joint venture interest in another. It also plans to sell Coldwater (Mich.) Regional Hospital to Insight Health Systems, which is headquartered in Flint, Mich. The transaction is expected to close by the end of the year, pending regulatory approvals and closing conditions.

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