Mercy dips into the red with -0.3% margin in FYQ1: 5 things to know

St. Louis-based Mercy reported an operating loss of $7.5 million (-0.3% margin) in the first quarter of fiscal 2025 (the three months ending Sept. 30), down from a $25.8 million operating gain (1.2% margin) in the first quarter of fiscal 2025. 

Five things to know: 

1. Operating revenues for the quarter increased 16.7% year over year to $2.45 billion while expenses grew by 18.5% to $2.46 billion, according to financial documents published Dec. 24. 

2. Net income for the first quarter of fiscal 2025 was $133.4 million, up from $22.7 million in the prior-year period. 

3. On Dec. 19, 2023, Mercy acquired Cape Girardeau, Mo.-based SoutheastHealth, a two-hospital system. Mercy assumed $168.5 million in long-term debt from the acquisition, putting its total long-term debt at $2.58 billion as of Sept. 30, 2024. 

4. Days cash on hand increased from 185.7 days at June 30, 2024 to 186.6 days at Sept. 30, 2024. 

5. Days in accounts receivable decreased from 46.8 days at June 30, 2024 to 44.3 days at Sept. 30, 2024.

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