ProMedica’s senior care division announced an $87.3 million loss for the third financial quarter, a deeper cut compared to a $53.4 million operational loss in the same quarter last year.

The financial report comes on the heels of Welltower’s (NYSE: Well) plans to sell and transition 147 skilled nursing facilities from ProMedica to Integra Health, through a newly formed joint venture.

The Toledo, Ohio-based company will still operate 10 SNFs after the transition, along with assisted living, memory care centers, hospice and home health care agencies as part of its senior care division moving forward, with the majority of properties falling into the latter two care settings, according to data in the quarterly disclosure.

The Welltower announcement came out subsequent to quarter end and the transfer is expected to occur on Dec. 19.

ProMedica leadership declined an interview.

Shankh Mitra, CEO and Chief Investment Officer for the real estate investment trust (REIT) said in a recent earnings call that the shift was a “win” for all parties, noting that ProMedica wanted to focus on its core service lines and be in a higher margin business.

Sources of revenue for ProMedica are broken down into three sections: senior care represents 48% of revenue for Q3, a provider division making up 37% of revenue and 15% for its insurance division.

Net patient service revenue for ProMedica Senior Care was $677.1 million year-to-date, an increase of $12.5 million, or 1.9% compared to 2021. Leadership said the increase mirrors rising admission volumes.

Expenses for the division increased as well by $39.3 million so far in 2022, a 5.2% change compared to 2021. Increased expenses were directly driven by agency costs as workforce shortages persist in the post-acute and long-term care space.

Updates conflict somewhat with news of incremental hiring improvements during the spring; ProMedica Senior Care President Angela Brandt said at the time that the company was striving to create new, less “contentious” staffing agency relationships.

Welltower’s Mitra said ProMedica managed to halve its use of agency labor during Q2 as well, at the time significantly narrowing operating losses.

“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 2022,” Timothy Roberts, CPA and vice president of treasury said in the quarterly disclosure.

Despite staffing challenges, ProMedica still managed to increase skilled nursing occupancy by 5%, from 70% in Q3 2021 to 75% in Q3 2022, with an increase in its managed care average daily census.

CARES Act funding of $27.2 million helped offset Covid-related expenses of $17.3 million.

The loss is the most recent in deep cuts for ProMedica – Q3 losses follow $105 million in operating losses from its senior care division during Q2 of this year, a leadership shakeup and the loss of its Paramount Advantage Medicaid business during Q1.

The company saw a staggering $404.9 million drop in membership revenues and decrease of $321.3 million in medical expenses from the Paramount loss.

ProMedica in May welcomed Louis Robichaux as its interim CFO who replaced Steve Cavanaugh. 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.

Arturo Polizzi took on the role of president as well, while continuing as ProMedica’s COO.

The company has reportedly replaced two other executive positions – Debi Brobst replaced Murry Mercier as interim chief information officer, and Justin Skiver replaced Matt Kang as chief financial strategy officer for the senior care division.

ProMedica Chief Philanthropy Officer Gary Cates was given added responsibilities as part of the leadership update earlier this year, overseeing government relations, social determinants of health and community relations.

Division operating loss for the first nine months of 2022 was $316.6 million, ProMedica reported. In line with quarterly comparisons, this year had “unfavorable” results as 2021 saw a total operating loss of $182.2 million.

Total net patient service revenue increased $25.1 million so far this year to land at $2 billion. Expenses increased $148 million, or 6.7% compared to 2021.