Ascension's operating income sinks 93% in Q1

St. Louis-based Ascension saw revenues and operating income decline in the first quarter of fiscal year 2018, which ended Sept. 30.

Ascension reported revenues of $5.55 billion in the first quarter of fiscal year 2018, down 1.9 percent from revenues of $5.66 billion in the same period of the year prior. The decline in revenues was largely attributable to the divestiture of Saint Joseph's Hospital in Marshfield, Wis., at the end of June.

Ascension said adverse weather caused patient volumes to drop in the three months ended Sept. 30. On a same-facility basis, equivalent discharges, inpatient admissions, inpatient surgeries, outpatient surgeries, observation days and emergency room visits decreased year over year.

"These same facility statistics were dampened due to extreme weather conditions experienced by our facilities in Jacksonville, Fla., in September due to tropical storm and hurricane force winds and flooding in the area," said Ascension. "Hurricane Irma caused extensive damage in the Jacksonville area in September."

The health system kept its expenses in check in the first quarter of fiscal year 2018. Ascension said expenses climbed 0.2 percent year over year. This growth was primarily due to higher labor and supplies costs, as well as higher purchased services and professional fees. The health system's uncompensated care also increased, climbing 7 percent year over year.

Ascension saw net impairment, restructuring and one-time losses increase from $5.6 million in the first quarter of fiscal year 2017 to $50.7 million in the same period of fiscal year 2018. The losses were primarily due to $10.5 million in expenses associated with the implementation of an enterprise resource planning system; one-time time termination and other restructuring expenses related to Hurricane Irma; and other nonrecurring expenses, such as software implementations.

Ascension ended the first quarter of fiscal year 2018 with operating income of $11.48 million, down 93 percent from operating income of $172.63 million in the same period of the year prior.

After factoring in strong investment returns, Ascension posted net income of $353.77 million in the three months ended Sept. 30, down 16.4 percent from the same period of the year prior.  

More articles on healthcare finance:

Fitch issues negative outlook for nonprofit hospitals: 4 things to know
Trinity Health races to sell $889M in bonds ahead of tax changes
5 latest hospital closures

© Copyright ASC COMMUNICATIONS 2018. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months