Amber Sims MBA Executive Vice President and Chief Strategy and Growth Officer | Alexian Brothers Behavioral Health Hospital, Hoffman Estates
Amber Sims MBA Executive Vice President and Chief Strategy and Growth Officer | Alexian Brothers Behavioral Health Hospital, Hoffman Estates
Ascension has published its financial results for the first quarter of fiscal year 2025, which ended on September 30, 2024. The healthcare organization reported a net income of $387 million, reflecting a significant operational improvement of $1.2 billion compared to the previous quarter.
The company experienced a loss from recurring operations amounting to $197 million during this period. This is an improvement from the $1.4 billion loss recorded in the fourth quarter of fiscal year 2024. The previous quarter's performance was affected by a cybersecurity attack in May that disrupted operations and led to additional costs.
Ascension also reported a total operating loss of $221 million for Q1 FY25, including $24 million in non-cash write-downs and non-recurring losses.
Eduardo Conrado, President of Ascension, emphasized the organization's focus on quality care and community trust: "Our Q1 FY25 results—marked by a $1.2 billion improvement in recurring operating performance from the previous quarter—demonstrate significant progress in operational efficiency and strategic growth."
Saurabh Tripathi, Executive Vice President and Chief Financial Officer of Ascension, highlighted their economic strategies: “An uplift in recurring operating performance reflects our commitment to disciplined financial management.”
During this period, Ascension's acute care facilities served a similar number of patients as the previous year. Same facility volumes were within 1.5% of last year's figures despite challenges posed by the cybersecurity incident.
After Q1 FY25 ended, Ascension entered into a joint venture with Henry Ford Health System (HFHS) on October 1, 2024. The partnership involved contributing Ascension’s membership interest in certain Michigan facilities to HFHS for a noncontrolling interest in HFHS. Additionally, new hospitals were opened in Oklahoma and Indiana.
Ascension saw an increase in same facility net patient service revenue by 2.4%, while operating expenses rose by 2.6% compared to last year. Operating revenue grew over $925 million from Q4 FY24 or over $1 billion on a same facility basis.
Mr. Tripathi expressed confidence about Ascension’s future: “With strong momentum from operational improvements and progress towards our recovery from the cybersecurity attack, I continue to be confident in Ascension’s future trajectory for FY25 and beyond.”
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