Dive Brief:
- Ascension returned to profitability in its fiscal year 2025, a metric the nonprofit provider has been chasing since 2021, the system reported Wednesday.
- The nonprofit health system recorded $917.7 million in net income for the year ended June 30, up from a $1.07 billion loss last year.
- Ascension celebrated the results as evidence of its “operational discipline,” including improved labor productivity and tighter controls on spending. The system also said it has continued to recover from a massive cyberattack in 2024 that impacted about 5.6 million people.
Dive Insight:
Ascension operates a massive portfolio of 120 hospitals across 16 states and Washington, D.C.
The provider has recently focused on reshuffling its portfolio to focus on outpatient services, divesting several hospitals in Illinois, Michigan and New York and investing in outpatient care.
In June, the health system signed a definitive agreement to acquire ambulatory surgery provider Amsurg for $3.9 billion. Should the deal close, it will add more than 250 ambulatory surgery centers across 34 states to Ascension’s outpatient portfolio.
The investments have boosted Ascension’s financial performance. The health system said its same-facility daily volumes rose 5% to 7% since the fourth quarter of 2024, due primarily to “strategic investments in ambulatory services, service line development, and community-based care.”
Ascension also benefited from cutting costs during its fiscal year. Total operating expenses fell by 14.1% year over year to $25.8 billion as Ascension slashed salary and wages spending, purchased services and supplies spending.
“Our FY25 results reflect the disciplined execution of our strategy and the progress we have made across the organization,” Eduardo Conrado, president and soon-to-be CEO of Ascension, said in a statement accompanying the earnings. “Strategic initiatives, from expanding ambulatory and specialty services to investing in digital capabilities, are helping us meet patients where they are while elevating our overall performance.”
The health system’s return to profitability comes after a multi-quarter effort to recover from a massive cyberattack that occurred in May 2024.
The cyberattack caused ripple effects for months, forcing Ascension to delay or reschedule some procedures and depressing same-facility volumes between 8% to 12% year over year on average during May and June 2024.
Moving forward, the health system said it plans to focus on strategic investments in ambulatory expansion, specialty services and digital innovation.
