Ascension reports $3B annual operating loss

St.Louis-based Ascension, one of the largest health systems in the country, has reported a full-year operating loss of $3 billion on revenue of $28.35 billion, compared with an $879.2 million loss on $27.98 billion in revenue last year, according to recently released financial documents.

Advertisement

The $3 billion figure includes $1.5 billion of nonrecurring losses and impairment in the fiscal year ending June 30. That $1.5 billion figure compares with a gain of $26 million in 2022.

Expenses rose 4.1 percent over the previous year to total $29.9 billion. Salaries and wages decreased 2.5 percent to total $11.8 billion.

“Since the height of the staffing and labor challenges experienced in FY22, the system’s implementation of certain economic improvement plans have focused on stabilization of the workforce and have contributed to a reduction of agency staffing rates and utilization,” Ascension said.

The net loss for the 140-hospital system totaled $2.5 billion as investment returns helped mitigate the operating decline. Net loss for the prior year totaled $1.9 billion.

Ascension said its balance sheet and liquidity levels remain strong with sufficient liquidity to continue to provide care for patients, despite the economic challenges resulting from recent economic conditions including investment market volatility.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.