Toledo, Ohio-based ProMedica's operating performance for the first quarter of 2019 fell short of the performance for the same three-month period of 2018, according to financial documents released June 12.
The 13-hospital system's operating revenue grew to $1.66 billion in the three months ended March 31, up from $852 million in the first quarter of 2018. A large chunk of the increase in revenue — $759 million — was attributable to ProMedica's acquisition of HCR ManorCare, the second largest provider of post-acute services and long-term care in the U.S.
ProMedica's operating expenses climbed to $1.6 billion in the first quarter of 2019, up from $820 million reported in the same period of last year. The HCR ManorCare acquisition added $733 million in expenses in the first quarter of 2019, and medical expenses increased year over year by $66.9 million related to a higher medical loss ratio for ProMedica's insurance company, Paramount Health Care.
ProMedica ended the first quarter of 2019 with an operating loss of $9.8 million, compared to an operating loss of $2.7 million in the same period a year earlier. The health system said the wider operating loss was largely due to the negative operating performance of Paramount, which has more than 334,000 members across Ohio and Michigan.
After factoring in nonoperating gains, ProMedica ended the first quarter of 2019 with net income of $30.8 million, compared to net income $7.9 million in the same period of the year prior.
More articles on healthcare finance:
4 CFOs discuss their 2019 goals
Washington hospital charged thousands of patients hidden ER fee, lawsuit claims
Allegheny Health Network's Jeff Crudele on essential skills for CFOs: Have 'courage to speak the truth'