Ascension Narrows Quarterly Losses as System Recovers from Cyberattack Fallout
According to reporting by Healthcare Dive, Ascension posted a $101.2 million operating loss in the third quarter of fiscal year 2025, deepening from the $82.6 million loss in the same period last year, as it continues to recover from a cyberattack that significantly impacted operations in 2024. The health system also reported a net loss of $81.5 million, a reversal from the $580.9 million gain reported in the prior-year period.
Despite the losses, Ascension leadership emphasized signs of progress, particularly in the months following the cyberattack. “We have seen measurable growth in same-facility revenue, patient throughput, and nurse retention—all reinforcing our operational foundation,” said Saurabh Tripathi, executive vice president and chief financial officer.
For the 9 months ending March 31, Ascension recorded a $466 million operating loss compared to a $238 million loss in the prior year. However, net income reached $195 million over the same period, down from $343 million last year, driven in part by lower investment gains and divestitures, including the sale of 12 hospitals across Illinois and Michigan.
Same-facility patient volumes showed slight year-over-year declines, but performance has improved relative to the fourth quarter of 2024, when the cyberattack caused 8% to 12% average volume drops during May and June. The health system noted that per-day volumes have grown sequentially across quarters.
Operating expenses were reduced to just under $20 billion for the 9-month period, compared to $22.5 billion in the same period a year prior. The system attributed this to lower agency staffing use and improved staff retention, particularly among nurses. Total salary expenses declined 12.6% year over year.
Ascension also highlighted consistent improvement in recurring operating income, excluding net impairment losses. Losses narrowed from $1.4 billion in Q4 of 2024 to $197 million, $116 million, and now $68 million across the 3 subsequent quarters.
“These results allow us to reinvest in critical areas, including clinical infrastructure, digital innovation, and expanded access in the communities we serve,” Tripathi added, underscoring management’s focus on rebuilding operational and financial strength.
Reference
Vogel S. Ascension still chasing financial turnaround after last year’s cyberattack. Healthcare Dive. Published May 21, 2025. Accessed May 27, 2025. https://www.healthcaredive.com/news/ascension-chasing-financial-turnaround-cyberattack-q3-2025/748645/
