Ascension Reports $466M Operating Loss, Points to Gradual Recovery Post-Cyberattack

The recurring operating loss in Q4 FY 2024 exceeded $1.4 billion, narrowing to $197 million, $116 million, and $68 million in successive quarters.

Ascension reported a $466 million operating loss (-2.3% margin) for the nine months ending March 31, alongside $195 million in net income.

This is a steeper operating decline than last year’s $238 million loss, though the health system underscored quarter-over-quarter improvements as it recovers from the May 2024 cybersecurity incident.

The recurring operating loss in Q4 FY 2024 exceeded $1.4 billion, narrowing to $197 million, $116 million, and $68 million in successive quarters.

“Since Q4 FY24, we have improved recurring operating performance by $1.4 billion, while increasing patient volumes and same-facility revenue,” said Eduardo Conrado, President, Ascension. “This momentum reflects the discipline of our teams, the dedication of our caregivers, and a strategy grounded in compassion, performance, and data-driven decision-making. We are removing barriers to care, improving patient experiences, and building a more connected system better equipped to serve every community today and into the future.”

Lower Revenues and Expenses Amid Divestitures

Operating revenue for the nine months was $19.5 billion, down from $22.4 billion last year. The divestiture of hospitals in Illinois and Michigan and joint ownership changes with Henry Ford Health impacted this. Operating expenses dropped to $20 billion from $22.5 billion, with same-facility costs rising slightly due to inflation containment efforts.

Total salaries, wages, and benefits dropped 12.6% year-over-year and 0.7% on a same-facility basis, with a nurse retention rate of 88.3%—a five-year high.

“This achievement reflects the success of ongoing initiatives to foster a more supportive and engaging workplace,” the system said in a release. “By investing in career growth opportunities and reinforcing a culture that prioritizes associate well-being, Ascension is strengthening its workforce, reducing turnover, and decreasing reliance on agency staffing—ensuring a more stable, consistent care environment for patients.”

Volume Trends and Financial Outlook

Year-to-date same-facility volume showed slight declines—0.5% in discharges, 1.4% in ER visits, 2.9% in inpatient surgeries, and 2.7% in outpatient procedures. However, daily averages improved significantly compared to Q4 FY 2024, with ER visits up 6.4% and discharges up 5.9%.

“We have seen measurable growth in same-facility revenue, patient throughput, and nurse retention—all reinforcing our operational foundation,” said Saurabh Tripathi, CFO, Ascension. “These results allow us to reinvest in critical areas, including clinical infrastructure, digital innovation, and expanded access in our communities. Our financial strategy remains focused on long-term stability and mission-aligned growth.”

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