The company has lost hundreds of millions and is about half the size it was before the pandemic. Follow the latest news and notes here.
LUCAS COUNTY, Ohio — ProMedica is going through a major restructuring and reorientation caused by serious financial problems in the past few years.
Most recently, ProMedica has sold its Coldwater Regional Hospital in Michigan to California-based American Healthcare Systems, citing “financial concerns” as the main reason for the sale. The company also announced Terry Metzger as its new chief financial officer, who will oversee many of the new changes.
With hundreds of layoffs, hundreds of millions in losses and credit ratings that have been downgraded twice in nine months, here’s a look at ProMedica’s notable events over the past five years:
APRIL 2018: ProMedica buys HCR ManorCare for $3.3 billion.
NOVEMBER 2020: ProMedica Donates $10 Million to Metroparks for Glass City River Wall.
FEBRUARY 2021: ProMedica buys building for Bitwise project for $1.2 million.
JANUARY 2022: ProMedica is announced as a long-term presentation sponsor of the US Women’s Open.
FEBRUARY 2022: ProMedica buys naming rights to Glass City Center.
MARCH 2022: ProMedica reports a 2021 operating loss of $136.3 million (including a $275.3 million loss in its senior care division) after posting 2020 net income of $51.2 million.
MAY 2022: ProMedica Reports First-Quarter Operating Income Loss of $126 Million; Fitch Ratings is downgrading ProMedica’s overall credit rating from ‘BBB+’ to ‘BBB-‘ and assigning a ‘negative’ outlook.
MAY 2022: Randy Ostro no longer president of ProMedica, but remains CEO; four other top executives have been fired, including CFO Steve Kavanagh.
JULY 2022: Paramount, the insurance division of ProMedica, is losing a lucrative Medicaid contract with the state of Ohio.
JULY 2022: ProMedica lays off 150 non-clinical employees.
AUGUST 2022: S&P downgrades ProMedica’s credit rating from ‘BBB-‘ to ‘BB+’, below investment grade.
AUGUST 2022: ProMedica reports a second-quarter operating loss of $155 million.
SEPTEMBER 2022: Ohio Attorney General Dave Yost orders ProMedica to pay UTMC at least $3.7 million and is facing a lawsuit after ProMedica refuses to pay for a nursing program they agreed to fund; ProMedica ultimately pays for the nursing program.
OCTOBER. 2022 year: Oostra announces retirement.
NOVEMBER 2022: Announced by ProMedica it will come out of the skilled nursing enterprise December 19, 2022
NOVEMBER 2022: ProMedica reports third-quarter senior care loss of $87.3.
JANUARY 2023: ProMedica lays off 262 employees after leaving qualified medical facilities.
FEBRUARY 2023: ProMedica sells hospice and home health services to Gentiva for 710 million dollars.
MARCH 2023: ProMedica are asking the City of Toledo and Lucas County more money to organize fewer summer concerts, adjusts the payment structure with Lucas County for naming rights to Glass City Center, suspends pledge of $10 million to the Glass City Metropark and River Wall project and will raise $60,000 in sponsorship money for Jeep Fest; completes 10-year agreement with USGA for the US Women’s Open just a year after the deal.
APRIL 2023: 26 additional employees fired in relation to the sale of a qualified nursing home; the company announces $346 million in losses for the fourth quarter 2022 year.
MAY 2023: Fitch ratings lowers ProMedica’s credit rating from “BB+” to “BB-“; ProMedica sold by Coldwater Regional Hospital in Michigan; named a new CFO.
MAY 2023: ProMedica has an operating income of $23.7 million for the first quarter. This is the first time the company has had a positive quarter since the second quarter of 2020.
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