“The advance payments helped to mitigate the unfavorable cash flow impacts associated with the aforementioned cyber incidents as revenue cycle processes continue to ramp towards recovery,” the health system said in financial documents published Feb. 17. “In accordance with the terms and conditions of the programs, recoupments began in FY24 with all payments being fully recouped at Dec. 31, 2024.”
Despite the temporary financial strain from the cyberincidents, Ascension said its financial position remains strong. As of Dec. 31, 2024, the system reported net unrestricted cash and investments of $15 billion, representing about 37% of its total assets. The system’s days cash on hand stood at 207 days, marking an increase of 13 days since June 30, 2024.
A key factor influencing Ascension’s cash and investment position has been the temporary increase in accounts receivable due to delayed collections following the cybersecurity incidents. However, as accounts receivable have been recovered, liquidity has improved in fiscal 2025. These improvements were partially offset by standard operational outflows, including payments of accounts payable, accrued liabilities and capital expenditures.
To ensure financial flexibility, Ascension said it maintains a robust liquidity strategy, including access to multiple short-term liquidity facilities. The system has a syndicated line of credit totaling $1 billion, committed through Nov. 18, 2027, which was undrawn as of Dec. 31, 2024, despite prior borrowings in fiscal 2025. Additionally, in August, Ascension secured an additional $500 million one-year line of credit, also undrawn at year-end.
During the second quarter of fiscal 2025, Ascension received $992 million from the issuance of commercial paper, using the proceeds to repay outstanding balances on lines of credit and a bank loan. By Dec. 31, 2024, this commercial paper issuance was the only outstanding short-term debt within Ascension’s liquidity facilities. Notably, on Feb. 12, 2025, the system paid off $150 million of the outstanding commercial paper balance.
Ascension reported a $143 million operating loss (-2.2% margin) in the fiscal second quarter, which ends Dec. 31, compared to a $38.5 million operating gain (0.5% margin) in the same period last year as its financial recovery continues. Ascension said its volume recovery has continued and economic improvement plans have delivered significant operational results.
“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,” Executive Vice President and CFO Saurabh Tripathi said.
