Community Health Systems (NYSE: CYH) is continuing to grow its ambulatory surgery center (ASC) footprint despite a slight dip in lower-acuity volumes during the first quarter of 2025, company leaders said during an April 24 earnings call.
“We did have another strong growth quarter in our ASC environment, as we continue to incrementally add one to two ASCs per quarter,” CEO Tim Hingtgen said. “So we still see durability for the long run, as we diversify the mix of surgeries happening in various sites of care across our markets.”
Hingtgen attributed a slowdown in certain outpatient procedures, particularly GI cases, to factors including the flu season, patient or provider illness, and the early-year reset of co-pays and deductibles.
However, CHS was pleased with underlying volume trends and broader momentum across its service lines, he said.
The Franklin, Tennessee-based health system, which operates 71 hospitals and a growing network of outpatient facilities, continues to invest in outpatient capabilities through targeted acquisitions and service line development.
“We have been strategically developing both acute care and ambulatory services, including our acquisition of 10 urgent care centers in Tucson late last year, as well as incremental investments in ASCs,” Hingtgen said.
CHS is going to try balancing hospital-based services with ambulatory sites of care as a long-term strategy, he added.
“Our ability to balance acute care hospital services with ambulatory sites of care leverages the unique benefits of each care setting to create comprehensive service options for our patients,” he said.
Hingtgen also pointed to “outsized growth” in robotic surgery case volumes during the quarter, which he linked to recent investments in advanced surgical platforms.
“In terms of the durability and the investability in our markets to attract and grow new lines and higher levels of business, we still see that line of sight straight and narrow through the portfolio,” he said.
The net operating revenue reported by CHS for the first quarter was $3.16 billion, a 0.6% increase compared to the same quarter in 2024.
