Ascension has released its second quarter financial results for the six months ended December 31, 2024 (Q2 FY25 YTD). Ascension’s net income for Q2 FY25 YTD was $277 million, which represents a $515 million improvement from the prior year. During the first six months 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 $313 million for the six months ended December 31, 2024, as compared to income from recurring operations of $40 million in the prior year. For the three months ended December 31, 2024 (Q2 FY25), Ascension reported a recurring operating loss of $116 million, representing a $1.3 billion improvement from Q4 FY24.
In Q4 FY24, Ascension operations were impacted by the May cybersecurity attack. However, in FY25, Ascension’s volume recovery has continued and economic improvement plans have delivered significant operational results. Ascension’s same-facility patient volume has improved +5-6% since the cyber event and key operational KPIs are getting back to normal state of operations.
Ascension reported recurring operating EBIDA and an EBIDA margin of $320 million and 2.4%, respectively, for Q2 FY25 YTD. Ascension also reported a $365 million total operating loss for Q2 FY25 YTD, inclusive of $51 million of one-time, non-cash write-downs and other non-recurring losses as compared to a $155 million total operating loss in the prior year. Ascension remains focused on operational improvements while supporting its clinical teams and delivering exceptional care to patients.
"Ascension continues to build momentum, strengthening our ability to serve communities with high-quality care while expanding access and upholding our commitment to our Mission," said Eduardo Conrado, President of Ascension. "Our Q2 FY25 results demonstrate the meaningful progress we are making in strengthening our financial position, with a $1.3 billion improvement in recurring operating performance from Q4 FY24. With same-facility revenue increasing by 1.5%, we are further enhancing our ability to invest in the resources and care that support our communities. Our focus remains on elevating the patient experience, expanding access to care, and ensuring that every step forward reflects our Mission and dedication to those we serve."
"Our Q2 FY25 results demonstrate the sustainable impact of our financial discipline and operational excellence,” said Saurabh Tripathi, Executive Vice President and Chief Financial Officer of Ascension. "We continue to strengthen our ability to reinvest in our workforce, technology, and patient care, that ultimately supports our Mission. The steady improvement in recurring operating results enables us to take a forward-looking approach—expanding access, enhancing services, and reinforcing long-term financial stability. We remain committed to building on this progress to advance our Mission and better serve our communities."
During the six months ended December 31, 2024, Ascension’s acute care facilities around the nation served a comparable number of patients from the prior year (on a same-facility basis). As Ascension continued to improve volumes through the recovery process, the System’s same-facility volume for Q2 FY25 YTD had increased up to 6.1% on a per-day basis from Q4 FY24. The System continues to expand capacity in acute care settings and build additional capabilities in ambulatory settings to improve access. Ascension continues to align its sites of care footprint to best serve our patients at an optimal location of their convenience.
For the six months ended December 31, 2024, Ascension reported a 1.5% increase in same-facility operating revenue, while same-facility operating expenses, including cyberattack-related expenses, were managed to a 1.9% increase over the prior year. Additionally, Ascension’s Q2 FY25 same-facility operating revenue increased almost $1.3 billion from Q4 FY24, continuing to demonstrate recovery progress from the May cybersecurity attack. For the six months ended December 31, 2024, Ascension also provided $744 million of care of persons living in poverty and other community benefit programs across our footprint.
Mr. Tripathi noted, "Our ongoing operating performance, reinforced by a strong balance sheet and financial stability, positions us well to advance Ascension’s Mission and deliver high-quality, affordable healthcare to the communities we serve nationally."
