Toledo, OH-based ProMedica Senior Care on Monday reported a $14.7 million operating loss for the second quarter, and parent company ProMedica posted a $39.8 million operating loss for the quarter, the company said in a quarterly report shared with the McKnight’s Business Daily.

The company, however, said that it is encouraged by other measures of performance.

“While ProMedica, like many other health systems, is still navigating financial challenges, we are encouraged by the system’s overall year-over-year financial improvements and positive [earnings before interest, taxes, depreciation, and amortization] — a year-to-date operating income (after depreciation, amortization, and impairment expense) of $1.3 million, which is an $88.3 million improvement over the prior year-to-date,” Associate Vice President, Strategic Communications, Tausha Moore told the McKnight’s Business Daily on Tuesday.

The companywide loss of $39.8 million in the quarter compares with an operating loss of $61.7 million in the same quarter a year ago.

“We have made significant progress with thoughtful cost reduction, and we continue to focus on improving profitability to help ensure the stability and sustainability of the organization,” Moore added. “With the understanding that overcoming the financial challenges fueled by the pandemic, labor issues and inflation would take time, we are pleased with our progress. It is important to note that our organizational plan is multifaceted and long-range, and our results are on pace and consistent with these expectations.”

Senior Care loss bigger than 2022

The senior care division’s $14.7 million operating loss for the quarter, however, is larger than the one seen in the second quarter of 2022, when it was $11.5 million.

And ProMedica Senior Care net patient service revenue of $60.3 million for the second quarter of 2023 decreased by $5.8 million, or 8.7%, compared with the second quarter of 2022. Expenses in the second quarter also decreased, by $10.2 million, or 12.1%, compared with the prior year, driven by lower labor and agency costs.

The company’s second-quarter report comes after ProMedica made a near total exit from skilled nursing last year in an effort to resolve ongoing operating losses within its senior care division. Effective Dec. 22, 2022, Toledo, OH-based real estate investment trust Welltower transferred 147 skilled nursing facilities previously operated by ProMedica Senior Care to another operator. The transfer of seven SNFs in California and seven SNFs in Maryland and South Carolina is still in process, with negotiations with potential new owners/operators ongoing, ProMedica said Monday.

Promedica had reported a $346.4 million operating loss for the fourth quarter of 2022, with the senior care division reporting an operating loss of $338 million.

As of June 30, 2023, ProMedica operates 59 assisted living communities. Year-to-date occupancy is 72%, compared with 66% at this time last year. Revenue per occupied room year to date is $7,002, compared with $6,611 year to date in the second quarter of 2022.

Year-to-date for 2023, operating revenue in assisted living is $113,886, up from $99,751 at the end of June 2022.