St. Louis-based Ascension reported a $221 million operating loss (-3.1% margin) in the first quarter of its fiscal year, the three months ending Sept. 30, compared to a $193.7 million operating loss (-2.7%) in the same quarter last year.
The $221 million loss is a $1.2 billion improvement on the $1.4 billion operating loss recorded in the previous quarter. It also includes $24 million in one-time, non-cash write-downs and non-recurring losses.
"This quarter's financial results mark a pivotal step forward, illustrating the effectiveness of our focused economic improvement strategies," CFO Saurabh Tripathi said. "An uplift in recurring operating performance reflects our commitment to disciplined financial management, carefully balanced between growth and efficiency. Despite ongoing challenges, including the continuing recovery from May's cybersecurity attack, we are solidifying our operational foundation to support stability and future investments."
Revenue for the three months ending Sept. 30 decreased 2.5% year over year to $7.1 billion while expenses decreased 1.5% to $7.3 billion. However, Ascension reported a 2.4% increase in same facility net patient service revenue, while same facility operating expenses were managed to a 2.6% increase over the prior year.
Additionally, Ascension's Q1 FY25 operating revenue increased $925 million from the prior quarter, $1 billion on a same facility basis, demonstrating recovery progress from the May cybersecurity attack.
"With strong momentum from operational improvements and progress towards our recovery from the cybersecurity attack, I continue to be confident in Ascension's future trajectory for FY25 and beyond," Mr. Tripathi said.
After accounting for nonoperating income, such as investment returns, Ascension reported a net income of $387.1 million in the fiscal first quarter, compared to a $597.6 million net loss in the same period last year. As of Sept. 30, Ascension's long-term debt stood at $6 billion and days of cash on hand was 200.
Same facility volumes for Q1 FY25 were within 1.5% of prior year volumes for the health system, which is continuing to expand capacity and backfill certain volumes that have shifted to outpatient.
"Our Q1 FY25 results — marked by a $1.2 billion improvement in recurring operating performance from the previous quarter — demonstrate significant progress in operational efficiency and strategic growth," Ascension President Eduardo Conrado said. "A 1.2% increase in same-facility revenue, alongside disciplined expense management, underscores the strong foundation we are building for long-term stability and sustainable impact. Looking ahead, we are dedicated to enhancing the patient experience and access to care in alignment with our mission, core values and priorities."