Even with a slight dip in outpatient surgical volumes, Ardent Health Services (NYSE: ARDT) is doubling down on its push to build out ambulatory access points.
That, in turn, may signal that the race to capture same-market ambulatory surgery center (ASC) demand – and eventually expand in new markets – is just beginning.
The Nashville-based company, which went public last year, reported first-quarter 2025 revenue of $1.5 billion, up 4% from the prior year’s same period. Admissions rose 2.7%, and net patient service revenue per adjusted admission grew 1.2%, CFO Alfred Lumsdaine said during a May 7 earnings call.
Outpatient surgeries declined 2.3% year over year, but Lumsdaine attributed that drop largely to calendar fluctuations.
“We estimate year-over-year surgical volume was impacted by approximately 1.5% from the timing of Leap Year,” he said.
Still, CEO Marty Bonick made it clear that Ardent’s ambulatory ambitions remain intact and growing. The company is actively expanding its footprint in high-growth urban markets, with a particular focus on urgent care and outpatient entry points that feed surgical pipelines, he said.
“As the year progresses, we expect [the NextCare acquisition] to generate additional downstream volumes in our Tulsa and Albuquerque markets,” Bonick said, referring to Ardent’s Jan. 1 acquisition of 18 urgent care clinics. “We expect to continue to strategically expand ambulatory access points to meet consumer demand and drive growth.”
Outpatient development is the first step in a three-pronged expansion strategy, Bonick said.
The next steps are deepening market penetration where Ardent already holds strong inpatient share, pursuing acquisitions in adjacent or underserved markets, and partnering with nonprofit and academic health systems looking for operational support.
“We’ve got more inbound calls coming from academic partners in particular that have taken note of the model that we have,” Bonick said. “They may not have the balance sheet or the integrated operating experience to expand into new regions and see Ardent as a good target partner.”
To support that growth, the company is in the final stages of recruiting a chief development officer who will lead Ardent’s M&A strategy, Bonick added.
And the company is confident it will execute at least one ambulatory transaction, whether it’s a “tuck-in” that fits into its existing operations or a full market entry before the end of the year, Bonick said.
“We continue to sharpen our focus on market share growth, taking a disciplined approach to evaluating opportunities in both the ambulatory space as well as acute,” he said.
In addition to M&A, Ardent will continue to pursue operational efficiencies, like improving turnover and focusing on physician preferences, Bonick said. And outpatient expansion is also a part of that strategy, he added.
“While we’ve got very strong inpatient market share, we know that there’s still a lot of outpatient development work to be captured,” he said.
Even amid industry-wide concerns about payer denials, Ardent believes the demand for outpatient services is sustainable, Bonick said.
“The strength of our markets, coupled with the strength of our performance, gives us strong conviction that we will continue to see strong volume growth,” he said.
