Ascension's operating revenue climbs $1.3B in first half of FY 2019

St. Louis-based Ascension saw operating revenues and operating income increase in the first six months of 2019, but ended the period with a net loss.

Ascension reported operating revenues of $12.6 billion for the six months ended Dec. 31, up $1.3 billion from $11.3 billion reported in the first six months of fiscal 2018, according to unaudited financial documents. The increase was primarily attributed to revenue recorded by Chicago-based Presence Health facilities, which Ascension acquired in March 2018.

Ascension also saw operating expenses increase in the first half of fiscal 2019 to $12.3 billion, up 10.3 percent from $11.2 billion reported in the same period a year prior. The increase in operating expenses was primarily due to the Presence acquisition.

The health system saw its operating income improve in the first half of 2019 to $221.8 million, up 162 percent from $84.7 million reported in the first half of the previous fiscal year. Net impairment, restructuring and nonrecurring losses were $42.4 million for the most recent six-month period, down from losses of $78.3 million during the six months ended Dec. 31, 2017.

However, largely due to lower return on investment, Ascension posted an $836.3 million nonoperating loss in the first half of fiscal 2019, compared to a nonoperating gain of $923.2 million in the same period a year prior. After including the nonoperating loss, Ascension reported a net loss of $567.9 million in the first half of 2019, compared to a net gain of $882.2 million in the first half of fiscal 2018.

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