“Our Q2 FY25 results demonstrate the sustainable impact of our financial discipline and operational excellence,” Executive Vice President and CFO Saurabh Tripathi said. “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.”
Eight things to know:
1. Revenue for the quarter decreased 17.3% year over year to $6.4 billion while expenses declined 14.1% to $6.5 billion, according to financial documents published Feb. 17. The decline in revenue and expenses is partly due to several hospital sales that Ascension recently completed.
2. In the fourth quarter of fiscal 2024, Ascension operations were hampered by the May ransomware attack, resulting in reduced revenues from the associated business interruption along with costs incurred to address the issues and other business-related expenses.
3. However, in FY25, Ascension’s volume recovery has continued and economic improvement plans have delivered significant operational results, according to the health system. Ascension’s same-facility patient volume has improved 5-6% since the cyberattack and key operational KPIs are returning to normal state of operations.
4. As of Dec. 31, 2024, days of cash hand and net days in accounts receivable were 207 and 60.6, respectively. This is compared to 194 and 78.4 on June 30, 2024.
5. After accounting for nonoperating items, such as investments, Ascension reported a net loss of $110.2 million for the three months ending Dec. 31, 2024, compared to a $359.5 million net gain in the same period in fiscal 2024.
6. For the six months ending Dec. 31, 2024, Ascension reported a $364.5 million operating loss, compared to a $155.2 million loss in the prior-year period.
7. Ascension reported a 1.5% increase in same-facility operating revenue for the six months ending Dec. 31, 2024, while same-facility operating expenses, including cyberattack-related expenses, were managed to a 1.9% increase over the prior year. 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.
8. Long-term debt for the health system was $7.1 billion as of Dec. 31, 2024.
“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,” Ascension President Eduardo Conrado said. “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.”