Ascension swings to profit as outpatient push, cost cuts take hold

Editor's Note

Ascension posted a $917.7 million net income for fiscal 2025 and credits ambulatory growth and tighter spending controls, Healthcare Dive September 19 reports. The nonprofit system reversed a $1.07 billion loss from the prior year and said results reflect “operational discipline,” including improved labor productivity and reduced spend on salaries, purchased services, and supplies. Total operating expenses fell 14.1% year over year to $25.8 billion.

As detailed in the article, Ascension operates 120 hospitals across 16 states and Washington, DC and is reshaping its portfolio toward outpatient services. It divested several hospitals in Illinois, Michigan, and New York while investing in ambulatory care. In June, the system signed a definitive agreement to acquire ambulatory surgery provider AMSURG for $3.9 billion, a deal that will add more than 250 ambulatory surgery centers across 34 states to its footprint once completed.

Same-facility daily volumes rose 5% to 7% since the fourth quarter of 2024, which the system attributes to strategic investments in ambulatory services, service line development, and community-based care. Leadership also highlighted digital capabilities as part of its strategy to “meet patients where they are” and elevate performance.

The return to profitability follows a prolonged recovery from a May 2024 cyberattack that affected about 5.6 million people, depressed same-facility volumes by 8% to 12% on average in May and June 2024, and forced delays or rescheduling of some procedures, the outlet noted. Looking ahead, Ascension plans continued investment in ambulatory expansion, specialty services, and digital innovation.