Ascension reported a net income of $359.5 million in the fiscal second quarter ending Dec. 31, which is a $708 million improvement on the $238.1 million net loss it reported during the same quarter in 2022.
"We remain focused on improving hospital operations, ensuring sustainability for the future and making purposeful decisions that improve the health of individuals and the communities we are privileged to serve,"CFO Liz Foshage said. "Our Q2 quarterly results are a demonstration of this commitment and a signal that we continue to move in the right direction."
Six things to know:
1. On the operating front, the St. Louis-based health system reported income of $38.5 million for the quarter, up from a $291.4 million loss in the prior-year period. For the six-months ending Dec. 31, it reported a $155.2 million operating loss, up from a $409.9 million loss during the same period in 2022, according to financial documents obtained by Becker's.
2. Ascension attributed the operational improvement to economic plans focused on volume growth, rates and pricing, and cost levers. As part of these plans, the system is focused on improving service line volumes and ancillary services and strengthening its ambulatory footprint.
3. In fiscal Q2, revenue increased 9.4% year over year to $7.7 billion while expenses grew 2.5% to $7.6 billion. For the six-months ending Dec. 31, revenue increased 4.9% to $15 billion — driven by net patient service revenue — and expenses increased 2.1% to $15 billion.
4. Salaries, wages and benefits decreased 2.1% year over year for the six months ending Dec. 31. Key factors contributing to the decrease were the outsourcing of lab services, which began in Q2 2023, in addition to the "continuation of labor stabilization initiatives," according to the health system.
5. The 139-hospital system also reported positive recurring operating EBIDA of $741 million or a 4.9% recurring operating EBIDA margin during the second half of last year.
6. Over the six-month period, Ascension saw a year-over-year increase in overall same facility volume. This was primarily driven by total inpatient admissions and surgery visits as the system continues to expand capacity and backfill certain volumes that have shifted to outpatient settings.