Ascension reported first-quarter FY27 financial and operating results, showing continued improvement year-over-year. Our equivalent discharges grew 9% and Net Patient service revenue grew by $503M year-over-year. The recurring operating EBIDA was $229M, which was a $22M improvement compared to prior year. These results reflect continued operating discipline and driving clinical momentum to serve our patients in the most efficient manner.
For the quarter ended September 30, 2026, Ascension reported recurring operating EBIDA of $229 million and a recurring operating loss of $86 million, representing a recurring EBIDA margin of 3.6%. In comparison, Ascension reported a recurring operating EBIDA of $207 million and a recurring operating EBIDA margin of 3.4% in the first quarter of the prior fiscal year. EBIDA margin improved by 20 basis points year-over-year. Ascension’s operating margin also improved by 10 basis points year-over-year.
Excluding the year-over-year impact of changes in self-insurance trust fund (SITF) investment income, recurring operating EBIDA would have shown an improvement of $60 million compared with the prior year period. On the same basis, the recurring operating margin improvement would have been $38 million year over year.
Ascension reported a net loss of $34 million, excluding non controlling interest, for the quarter ended September 30, 2026, compared with net income of $338 million in the prior year period. The year over year change was primarily driven by a $400 million decrease in investment income due to volatility in the investment markets.
Driven by consistent growth in patient volumes, Ascension sustained operational momentum through the first quarter of fiscal year 2027. Total equivalent discharges rose 9.1% year-over-year, with positive trends observed across core performance metrics including total discharges, outpatient surgery visits, and emergency department visits. Most notably, outpatient surgery visits increased by 399% compared to the same period prior year, primarily due to the June 2026 acquisition of AMSURG which contributed 283,000 surgical visits to Q1’ FY27. Adjusted for the impact of the AMSURG acquisition, outpatient surgery visits increased 3.6% year over year.
"Healthcare needs to work better for the people we serve," said Eduardo Conrado, President and Chief Executive Officer of Ascension. "That means making it easier to get care, expanding services in our communities, and moving more care into outpatient settings. We are investing in these areas while continuing to improve how we operate. Our focus is on building a more connected health system that better meets the needs of patients today and in the future."
"Our recurring operating EBIDA of $229 million, an increase of $22 million year-over-year, reflects continued improvement in our operations," said Saurabh Tripathi, Executive Vice President and Chief Financial Officer of Ascension. "We are taking a disciplined approach to managing our resources and making investments that support our long-term growth strategy. This sustained progress year-over-year strengthens our financial foundation and gives us greater flexibility to respond to the needs of the clinicians, patients and the communities we serve."
Ascension continued its commitment to its Mission, directing $765 million toward community benefit during the quarter, including $312 million in care and programs for underserved populations and $453 million in unreimbursed Medicare costs.
During the first quarter, Ascension advanced several projects to expand clinical capacity and strengthen services. In Texas, Ascension Seton Williamson continued construction of a new patient tower. In Florida, Ascension Sacred Heart opened a 40-bed inpatient rehabilitation facility. Ascension Via Christi broke ground on a new emergency department in east Wichita, Kansas, while Ascension Saint Thomas Hospital West began a $120 million campus renovation in Nashville.
Ascension also expanded programs designed to reach patients outside traditional hospital settings. In Wisconsin, Ascension partnered with Outreach Community Health Centers to launch a mobile health clinic in Milwaukee. In Florida, mobile mammography services provided breast cancer screenings, while Ascension St. Vincent in Indiana delivered dental care through its mobile clinic. In Oklahoma, Ascension St. John Nowata transitioned to a Rural Emergency Hospital designation, maintaining emergency and outpatient services for the surrounding community.
Specialty care and clinical partnerships remained areas of investment. Ascension St. Vincent Evansville in Indiana completed its 1,000th transcatheter aortic valve replacement procedure. In Kansas, Ascension Via Christi partnered with Hutchinson Regional Healthcare System to expand cardiovascular services. Ascension Sacred Heart also received grant funding to support rural healthcare services in Northwest Florida.
Across its markets, Ascension continued working with community organizations to address needs beyond clinical care. In Florida, Ascension St. Vincent's supported students and families through a back-to-school outreach event. In Oklahoma, Ascension St. John partnered with local organizations to address food insecurity and connect residents with nutritious food.
Looking ahead, Ascension remains focused on improving operational performance, expanding its ambulatory and specialty care network, and investing in services that respond to community needs. These priorities will continue to guide the organization's growth and capital deployment throughout FY27.
