The return to profitability marks a significant turnaround for the system, which posted a $1 billion loss last year while grappling with the aftermath of a cyberattack.
Dive Brief:
- Ascension returned to profitability in fiscal year 2025 after years of financial challenges.
- The health system reported $917.7 million in net income, compared to a $1.07 billion loss in the prior year.
- Leadership credited the improvement to enhanced labor productivity and tighter cost controls.
- The system continues to recover from a major 2024 cyberattack that impacted 5.6 million people.
- Fiscal year 2025 marks the first profitable year since 2021 for the nonprofit provider.
Dive Insight:
Ascension operates an extensive network of 120 hospitals across 16 states and Washington, D.C.
Recently, the nonprofit health system has been reshaping its portfolio to prioritize outpatient care. This includes divesting several hospitals in Illinois, Michigan, and New York, while ramping up investments in ambulatory services.
In June, Ascension announced a definitive agreement to acquire Amsurg, an ambulatory surgery provider, for $3.9 billion. If finalized, the deal would add over 250 ambulatory surgery centers in 34 states to Ascension’s growing outpatient footprint.
These strategic moves have positively impacted the system’s financial performance. Ascension reported a 5% to 7% increase in same-facility daily volumes since Q4 of 2024, attributing the growth to investments in ambulatory services, development of service lines, and expanded community-based care.
The system also saw significant cost savings over the fiscal year. Total operating expenses declined 14.1% year over year, falling to $25.8 billion, largely due to reductions in salaries, wages, purchased services, and supply costs.
The health system’s return to profitability follows several quarters of recovery efforts after a major cyberattack in May 2024.
The attack had lingering impacts for months, leading Ascension to postpone or reschedule numerous procedures and resulting in an average year-over-year decline in same-facility volumes of 8% to 12% during May and June 2024.
Looking ahead, the health system plans to prioritize strategic investments in ambulatory care expansion, specialty services, and digital innovation.
