Dive Brief:
- The St. Louis-based Ascension Health, one of the largest US health systems, posted a net loss of $86.99 million in the first quarter of fiscal year 2015, which ended Sept. 30.
- While the health system's operating revenue grew to $5.16 million in the first quarter of 2015, up from $4.91 million for the first quarter of 2014, Ascension’s expenses also increased to $5 million in the quarter ended Sept. 30, compared to $4.76 million for the same quarter a year ago.
- The health system ended the first quarter of 2015 with a $118.96 million operating surplus. However, Ascension reported $220.11 million in losses on its investments for the first quarter of 2015, which led to an $86.99 million net loss.
Dive Insight:
Ascension blamed higher operating costs, related to rising salaries, supplies and services, for its most recent loss. However, the organization has made important gains that will help in the long-term.
Ascension has been praised for new affiliations and "pruning" efforts, as of late. In the first fiscal quarter, the system signed deals to sell a controlling stake in Tucson, AZ-based Carondelet Health to Tenet Healthcare Corp. and Dignity Health as well as to divest Mount St. Mary's Hospital in Niagara Falls, NY, to Catholic Health. Just last month, Ascension also entered into a deal to sell its Missouri-based Carondelet Health to Prime Healthcare Services, and formed a joint operating agreement with Adventist Health System to manage the two systems' nine hospitals in suburban Chicago.
