Dive Brief:
- Nonprofit hospital operator Ascension posted a $197 million loss from recurring operations for the first quarter of its 2025 fiscal year, a $1.2 billion improvement over the prior quarter.
- The system attributed the improvement to its continued recovery from a major cyberattack in May, as well as focus on volume growth, efficiency initiatives and rates and pricing.
- Ascension recorded a net income of $387 million for the period ended Sept. 30, representing a $1.0 billion turnaround from the prior year.
Dive Insight:
Once Ascension restored access to its electronic health record following May’s cyberattack, the system’s top priority became increasing patient volumes, Ascension’s EVP and Chief Financial Officer Saurabh Tripathi said in September.
The cyberattack caused Ascension to delay or reschedule some procedures, contributing to an 8% to 12% average decline in same facility volumes during May and June compared to the prior year.
However, in the first quarter Ascension’s patient volumes were generally in line with the same period last year, the system said. Ascension reported a 2.4% year-over-year increase in same facility net patient service revenue during the quarter. Same facility operating expenses rose by 2.6%.
The system plans to continue capacity management efforts, including backfilling volumes that have shifted to outpatient settings.
“This quarter’s financial results mark a pivotal step forward, illustrating the effectiveness of our focused economic improvement strategies,” Tripathi said in a statement accompanying the results. “Despite ongoing challenges, including the continuing recovery from May’s cybersecurity attack, we are solidifying our operational foundation to support stability and future investments.”
Ascension noted several planned strategic ventures in the filing that did not materially impact its finances during the quarter.
Those include the system’s strategic joint venture with Henry Ford Health inked in October, which should expand Ascension’s stake in Michigan.
Ascension also plans to sell nine hospitals to Prime Healthcare. The deal has not yet closed. However, Ascension is holding the assets for sale and the deal is “expected to be finalized after all necessary approvals are obtained,” according to the filing.
