Ascension has released its third fiscal quarter financial results for the three and nine months ended March 31, 2024. Ascension reported income from recurring operations of $15 million for the nine months ended March 31, 2024 as compared to a $1.1 billion loss from recurring operations for the comparable prior year period. Additionally, Ascension’s recurring operating performance for the three months ended March 31, 2024 improved $622 million over the comparable quarter in the prior year. Ascension has realized meaningful operational improvement from economic improvement plans focused on volume growth, rates and pricing, and cost levers.
Ascension also reported positive recurring operating EBIDA (earnings before interest, depreciation, and amortization) of $1.0 billion or a 4.7% recurring operating EBIDA margin for the nine months ended March 31, 2024 (Q3 FY24 YTD). For Q3 FY24 YTD, Ascension reported a net operating loss of $238 million, inclusive of $253 million of one-time, non-cash write-downs and non-recurring losses. Ascension’s Q3 FY24 YTD net operating loss also represented a significant improvement over the comparable period in the prior year.
“We remain optimistic as the execution of Ascension’s strategic initiatives, including our economic improvement plan, continue to result in favorable quarterly financial results,” said Liz Foshage, Executive Vice President and Chief Financial Officer, Ascension. “More importantly, the positive trend in patient volume simply means we are sustaining and improving the health of more individuals in the communities we serve. Most importantly, as demonstrated by the recent CMS Hospital Star ratings, Ascension’s clinical quality scores continue to outperform national averages and further differentiate our hospitals’ quality. Through the dedication of our caregivers, leaders and associates, and their steadfast commitment to our Mission, we are hopeful for the future and confident that our organization will stay on this course.”
For Q3 FY24 YTD, Ascension experienced an increase in overall same facility volume over the comparable period in the prior year, most notably driven by total inpatient admissions, emergency visits and total surgery visits as the System continues to expand capacity and backfill certain volumes that have shifted to the outpatient setting. For the nine months ended March 31, 2024, Ascension reported a 5.3% increase in total operating revenue, driven by net patient service revenue, while total operating expenses were managed to net growth of 0.6% over the comparable period in the prior year.
Ascension’s net income for the three months ended March 31, 2024, including both operating and nonoperating items, was $581 million which represents a $1.3 billion turnaround from the same period in the prior year. For the nine months ended March 31, 2024, Ascension’s net income improved $2.2 billion over the prior year.
On May 8, 2024, subsequent to the quarter ending March 31, 2024, Ascension became aware of a cyber security incident impacting and interrupting access to some of its technology network systems. Due to the ongoing nature of this event, please refer to about.ascension.org/cybersecurity-event for any updates.
