Ascension’s operating margin falls below 1% in Q2

St. Louis-based Ascension saw its operating margin fall below 1 percent in the three months ending Dec. 31, 2021, according to a financial report released Feb. 18.

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The 142-hospital system recorded an operating income of $61,400 in the second quarter of fiscal year 2022. In the same quarter of fiscal 2021, Ascension saw an operating income of $652.4 million. 

Ascension recorded revenue of $7.3 billion in the second quarter of fiscal 2022, a 0.83 percent decrease from the same period one year before. The health system saw its patient service revenue increase, but other revenue — such as COVID-19 grant income — decreased year over year.

Although the health system’s overall revenue decreased, its expenses increased year over year to just under $7.3 billion. In the same period last year, Ascension’s expenses totaled $6.7 billion. 

After factoring in strong nonoperating gains, including $1 billion from investments, Ascension ended the second quarter of fiscal 2022 with a net income of $949.5 million. 

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