Ascension has released its first quarter financial results for the three months ended September 30, 2024 (Q1 FY25). During the first quarter of FY25, Ascension continued to realize significant operational advancements from economic improvement plans focused on volume growth, rates and pricing, and efficiency levers. Ascension reported a loss from recurring operations of $197 million for the three months ended September 30, 2024 as compared to a $1.4 billion recurring operating loss in the prior quarter, Q4 FY24, representing a $1.2 billion improvement in operating performance. In Q4 FY24, operations were impacted by the May cybersecurity attack noted further below, which resulted in reduced revenues from the associated business interruption along with incremental costs incurred to remediate the issues and other business related expenses. In Q1 FY24, the same quarter of the prior year, Ascension reported a $190 million loss from recurring operations.
On May 8, 2024, Ascension became aware of a cybersecurity attack impacting and interrupting access to some of its technology network systems. Ascension was proactive in both recovery actions and communications, including development of a cybersecurity event section on Ascension’s website. Due to the ongoing nature of Ascension’s recovery and restoration efforts, please refer to about.ascension.org/cybersecurity-event for any updates.
Ascension reported a $221 million total operating loss for Q1 FY25, inclusive of $24 million of one-time, non-cash write-downs and non-recurring losses.
“Ascension remains focused on delivering quality care and fostering trust within our communities,” said Eduardo Conrado, President of Ascension. “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. 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.”
“This quarter’s financial results mark a pivotal step forward, illustrating the effectiveness of our focused economic improvement strategies,” said Saurabh Tripathi, Executive Vice President and Chief Financial Officer of Ascension. “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. This progress positions us to further invest in critical resources to advance our Mission-driven priorities and enhance patient care and health outcomes across the communities we serve.”
During the three months ended September 30, 2024, Ascension’s acute care facilities around the nation served a comparable number of patients from the prior year. As Ascension continued to improve volumes through the recovery process, the System’s same facility volumes for Q1 FY25 were within 1.5% of the prior year volumes. The System continues to expand capacity and backfill certain volumes that have shifted to the outpatient setting as well as improve access, including any areas impacted by the cybersecurity attack. Ascension is continuing to align its sites of care footprint to best serve our patients at an optimal location of their convenience.
Subsequent to Q1 FY25, on October 1, 2024, Ascension entered into a strategic joint venture partnership with Henry Ford Health System (HFHS), contributing Ascension’s membership interest in facilities in southeast and mid Michigan to HFHS in exchange for a noncontrolling interest in HFHS. Subsequent to Q1 FY25, in October and November 2024, respectively, Ascension expanded its footprint by opening the Jenks Surgical Hospital in Oklahoma and a new Women and Infants Hospital in Indiana.
For the three months ended September 30, 2024, 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 over $925 million overall from the prior quarter, Q4 FY24, or over $1.0 billion on a same facility basis, demonstrating recovery progress from the May cybersecurity attack. Ascension’s net income for Q1 FY25 was $387 million, which represents a $1.0 billion turnaround from prior year. Mr. Tripathi noted “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.”
