Ethema Health Corporation's 2024 annual report highlights a period of robust financial performance and strategic expansion within its behavioral healthcare services, particularly in substance use disorder treatment. The company reported a revenue increase to $6.02 million, up from $5.16 million the previous year, marking a 16.5% growth. This growth is largely credited to enhanced marketing efforts at its West Palm Beach facility. However, the company also faced increased operating expenses, rising from $5.89 million to $7.35 million, leading to a net operating loss of $1.33 million, compared to $0.54 million in the prior year.
Significant developments for Ethema include the re-certification by the Joint Commission for its West Palm Beach and Boca Raton locations, underscoring the company's dedication to maintaining high-quality patient care and adhering to regulatory standards. The expansion of the Boca Raton facility, adding 25 beds, boosts the total capacity in Florida to 87 beds. This expansion is expected to increase facility utilization from 70% to 85% by the second quarter of 2025.
The acquisition of Edgewater Kentucky's treatment operations marks another milestone for Ethema, introducing 347 licensed beds to its portfolio, with 275 currently in operation. This expansion into Kentucky includes securing Medicaid approval and establishing contracts with major Managed Care Organizations, setting the stage for substantial revenue growth. Initial operations in Kentucky have achieved 65% utilization of staffed capacity, with projected first-quarter revenues of $2.1 million.
CEO Shawn Leon addressed the challenges posed by rising operating expenses but remains optimistic about the company's path to profitability. Strategic integration of new facilities and an increase in patient numbers are key components of this outlook. Ethema aims to elevate Kentucky facility utilization to 85% within the first year, anticipating quarterly revenues of $3.8 million. Despite delays in audit-related filings, the company continues to focus on developing innovative treatment programs and expanding its behavioral healthcare services across North America.
