Ethema Health Corporation has reported substantial operational developments in its 2024 annual report, highlighting strategic expansion in behavioral healthcare services across two states and a commitment to improving treatment capabilities for substance use disorders.
The company experienced a 16.5% revenue increase, growing from $5.16 million to $6.02 million, primarily driven by its West Palm Beach facility. Despite this growth, the organization also reported a net operating loss of $1.33 million, compared to $0.54 million in the previous year, largely attributed to increased operational expenses and investments in facility expansion.
A significant milestone for Ethema was the successful re-certification by the Joint Commission, an internationally recognized accrediting body. The audit of West Palm Beach and Boca Raton locations demonstrated the company's commitment to patient safety and high-quality care, with minimal findings during the comprehensive review.
The company's Florida expansion strategy includes the licensing of a second treatment center in Boca Raton, increasing bed capacity by 25 to a total of 87 beds. Management expects to improve facility utilization from 70% to 85% in the second quarter of 2025, with projected first-quarter revenues of approximately $1.5 million.
Equally significant is Ethema's entry into the Kentucky market through the acquisition of Edgewater Kentucky's treatment operations. This expansion adds 347 licensed beds, with 275 currently fully staffed and operational. The company has secured Kentucky Medicaid approval and contracts with four of five major Managed Care Organizations, with expectations of completing the fifth contract by June 2025.
CEO Shawn Leon expressed cautious optimism about the company's trajectory, acknowledging the challenges of integrating new facilities while maintaining confidence in the potential for increased revenue and improved profitability in upcoming quarters. The Kentucky operations have already demonstrated promising initial utilization, with 65% capacity usage and projected first-quarter revenues of $2.1 million.
The annual report reflects a strategic approach to growth in the behavioral healthcare sector, with a focus on expanding treatment capabilities, maintaining high accreditation standards, and positioning the company for future success in addressing substance use disorders.
