Ascension has released financial results for the three months ended September 30, 2023 (Q1 FY24). Ascension reported a loss from recurring operations of $171 million for Q1 FY24 which represents an improvement of $240 million in year over year performance (after normalizing prior year activity to exclude a significant one-time gain on sale). These results continue to demonstrate that Ascension’s operations and volumes have been impacted by and are stabilizing from the volatility and operational disruptions of the prolonged pandemic amidst broader inflationary and recessionary pressures within the U.S. economy. However, Ascension has also begun to realize meaningful operational improvement from economic improvement plans focused on volume growth, rates and pricing and cost levers. Achievement of these plans has contributed to improved performance over both the preceding quarter and same quarter in the prior year, as adjusted to exclude significant prior year one-time items.
For the quarter ended September 30, 2023, Ascension reported a net operating loss of $194 million. Ascension’s Q1 FY24 net operating loss also represented a significant improvement over the immediately preceding quarter (three months ended June 30, 2023). Additionally, Ascension reported positive recurring operating EBIDA (earnings before interest, depreciation, and amortization) of $183 million or a 2.5% EBIDA margin for the three months ended September 30, 2023.
“Amidst the challenging operating environment facing the American healthcare system, Ascension’s commitment to our Mission propels us forward,” said Liz Foshage, Executive Vice President and Chief Financial Officer, Ascension. “Through our ability to prepare, adapt, and implement our strategic plan, we continue to manage the ongoing challenges while improving operational performance. We are confident that we are on the right path to continue serving our communities and advancing our Mission.”
For Q1 FY24, Ascension experienced an increase in overall volume over the comparable period in the prior year, most notably driven by total inpatient admissions as the System continues to expand capacity and backfill certain volumes that have shifted to the outpatient setting. For the three months ended September 30, 2023, Ascension reported a 3.7% increase in net patient service revenue while total operating expenses were managed to net growth of 1.7% over the comparable period in the prior year.