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Ascension on Friday announced "continued progress in advancing operational efficiency" in reporting first-quarter financial results that showed a $133 million improvement in its operating losses year-over-year.
The operating loss of $88 million for the three months ended Sept. 30 is an improvement from the $221 million operating loss for the three months ended Sept. 30, 2024, Ascension said.
The Catholic health system reported net income of $338 million for Q1 2026, compared with $387 million for the same period last year.
"These results reflect continued progress in advancing operational efficiency, expanding access to care, and strengthening the organization's ability to serve communities in alignment with its Mission," Ascension said.
WHY THIS MATTERS
Headquartered in St. Louis, Ascension is a nonprofit Catholic health system with 95 wholly owned or consolidated hospitals across 16 states and the District of Columbia.
It has ownership interests in 26 additional hospitals through partnerships.
Ascension also operates 30 senior living facilities.
For the first quarter of fiscal 2026, Ascension said it demonstrated continued operational strength with an increase in patient volume.
It reported a 1.4% increase in same-facility volume, measured by equivalent discharges, compared with the same quarter last year.
Certain procedure volumes are shifting to outpatient settings, a trend supported by the growth of Ascension's Ambulatory Surgery Center (ASC) partnerships.
The organization's days cash on hand increased to 235, up from 228 at the close of FY25, reflecting enhanced financial stability and resilience, Ascension said.
The health system said it remains keenly focused on its growth plans, specifically by building service line volumes, strengthening ancillary services, and expanding its ambulatory footprint. It will continue to enhance the patient experience through digital transformation and streamlined operations.
"Our first-quarter results show the strength that comes from focusing on our strategy and staying true to our Mission," said Eduardo Conrado, president of Ascension. "We are managing resources with discipline, investing where it matters most, and supporting the teams who care for our patients and communities."
THE LARGER TREND
In June 2025, Ascension announced the retirement of CEO Joseph Impicciche at year-end after more than 20 years of service.
Current President Eduardo Conrado will succeed him effective Jan. 1, 2026. He joined Ascension in 2018.
Email the writer: SMorse@himss.org