Toledo-based Ohio ProMedica expects the COVID-19 recovery process for its Senior Care division to be extended due to a decline among COVID-related admission volumes, elevated expenses and reduced levels of government stimulus funding this year.
The nation’s largest nonprofit long-term care company on Friday reported in its quarterly financial report an overall operating loss of $101.4 million for the first nine months of 2021, compared with operating income of $168.2 million in the prior year.
The company’s Senior Care division had an operating loss of $53.4 million for the 2021 third quarter, which is an acceleration of the $11.9 million loss reported in the same quarter a year earlier. Executives also reported the division’s net patient service revenue was $664.6 million for the quarter — an increase of $22.6 million, or 3.5%, over a year earlier. The increase is attributed to 11 newly acquired facilities and increased volumes.
Some of the losses were offset by $21.3 million in CARES Act stimulus funding received during the quarter. The division, however, also incurred $25.9 million in COVID-related costs. Higher expenses included significant increases in agency staffing use and infection control costs.
The division’s skilled nursing occupancy also dropped from 75% to 70% when comparing 2021’s third quarter to 2020.
“The COVID-19 pandemic that began near the end of the first quarter of 2020 has continued to adversely impact the System’s revenue and operating results into the first nine months of 2021,” executives wrote in its quarterly financial report.
“While it is not possible to estimate the duration or full financial impact of the pandemic, management expects some adverse effects on operations to continue throughout 2021 and potentially into 2022,” they added.
The Senior Care division logged an operating loss of more than $182 million for the first nine months of 2021, compared to income of just over $84 million over the same span in 2020. The division also recorded $43.7 million in federal stimulus funding during the first nine months, while incurring $105.1 million in COVID-related costs during the same period.
ProMedica’s Senior Care division operates nearly 330 skilled nursing and rehabilitation centers, assisted living facilities, hospice and home health agencies in 26 states.
