Ethema Health Corporation reported a 16.5% revenue increase in its 2024 annual report, growing from $5.16 million to $6.02 million. The company experienced operational changes and expansion in Florida and Kentucky, positioning itself for potential growth in the behavioral healthcare sector.
The company's revenue growth was partially attributed to increased marketing spend of approximately $0.23 million. However, operating expenses also rose by 24.9%, reaching $7.35 million, which resulted in a net operating loss of $1.33 million compared to $0.54 million in the previous year.
A significant development for Ethema was the re-certification by the Joint Commission for its West Palm Beach and Boca Raton facilities, demonstrating commitment to patient care quality. The company completed licensing for its second Florida treatment center in Boca Raton, increasing total bed capacity to 87 and expecting to raise facility utilization from 70% to 85% in the second quarter of 2025.
In Kentucky, Ethema acquired Edgewater's treatment operations, adding 347 licensed beds with 275 currently staffed. The company obtained Kentucky Medicaid approval and Department of Corrections authorization, effective June 1, 2025. Initial Kentucky operations have utilized 65% of staffed capacity, with first-quarter revenues estimated at $2.1 million.
CEO Shawn Leon acknowledged the challenges of increased operating expenses but expressed optimism about future revenue potential through the Florida and Kentucky expansions. The company aims to increase patient count and optimize its facilities to improve profitability prospects.
