Agency costs related to the workforce shortage was to blame for the surge in expenses, according to the report. Meanwhile, senior care expenses increased by $32.6 million, or 4.4% compared to 2021. ProMedica acquired two assisted living facilities and nine SNFs last year as well, which are included in the master lease and joint venture agreements with Welltower. The divestiture transaction is not fully completed there are four facilities remaining held for sale as of June 30. “That’s all I’m going to say.”Īs part of its current master lease and joint venture agreements with Welltower (NYSE: WELL), the companies agreed to divest a portfolio of SNFs currently owned by Welltower and leased to ProMedica in 2021, according to the report. “We’re not losing our sleep over that income, or that return from that portfolio,” he added. ProMedica on average charges about $7,000 per bed, which is almost one-third of what its competitors are charging, he noted. Looking forward, Mitra was upbeat on the portfolio, as its low cost basis is helping the company keep rents for residents below market-rate. Still, Welltower CEO Shankh Mitra said in a recent earnings call that ProMedica has “significantly narrowed their operating losses” during the quarter, nearly halving its use of agency labor. ProMedica reported $662 million in net patient service revenue for its senior care division – the sector experienced a decrease of $15.7 million, or 2.3% compared to 2Q 2021. The company pointed to ongoing SNF divestitures since last year as the primary reason for senior care division revenue decline during the quarter. The company acquired HCR ManorCare in 2018, rebranding the network of long-term care facilities to become ProMedica Senior Care.
ProMedica business lines consist of its senior care division with 332 facilities, its health plan Paramount and physician group made up of 11 hospitals and one joint venture hospital.īroken down further, ProMedica’s senior care division has 158 SNFs, 57 assisted living facilities and 117 hospice and home health locations. The not-for-profit health care organization serves communities in 28 states and employs more than 44,000 people, according to the report. ProMedica Chief Philanthropy Officer Gary Cates will have added responsibilities as part of the leadership update, overseeing government relations, social determinants of health and community relations. The company has reportedly replaced two other executive positions – Debi Brobst replaces Murry Mercier as interim chief information officer, and Justin Skiver replaces Matt Kang as chief financial strategy officer for the senior care division - although the positions weren’t mentioned in the quarterly report. Robichaux has more than 30 years of experience in the health care sector, previously serving as senior managing director at Washington, D.C.-based consulting firm Ankura.Īrturo Polizzi took on the role of president as well, while continuing as ProMedica’s COO. Moving ahead this year, ProMedica welcomed Louis Robichaux as its interim CFO who replacedSteve Cavanaugh. For the first six months of 2022, ProMedica experienced a $281 million operating loss. Total operating loss was $155 million for the second quarter the company saw a $8.7 million total operating loss in Q2 2021. ProMedica disclosed unaudited results of operations and its financial position in a quarterly report ending June 30.
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She said ProMedica doesn’t have an update on layoffs or future restructuring efforts beyond what was included in the quarterly report. The company is evaluating different ways to operate more effectively and efficiently, Moore said, and seeks to strengthen ProMedica’s financial position while building stability and sustainability.
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