Ascension is pairing a financial rebound with an accelerated push into outpatient care, positioning the nation’s largest Catholic health system for deeper expansion in ambulatory surgery centers (ASCs) and ancillary services.
That’s one of the biggest takeaways from Ascension’s most recent round of financial-results reporting from earlier in February.
“Under its evolving leadership, Ascension remains committed to improving the health of individuals and communities served, meeting consumers where, when, and how they seek care, and advancing the shift toward ambulatory, virtual, and community-based care models,” the health system wrote in supplemental materials posted online.
Ascension – for those who have apparently been asleep for the past several months – is in the process of buying ASC company AMSURG.
Through the first half of its fiscal year, Ascension narrowed its operating loss to $139 million, compared with a $365 million loss during the same period a year earlier, according to its latest management discussion and analysis.
Net income, excluding non-controlling interests, reached $608 million.
Again, more importantly for ASC stakeholders, behind these numbers is a portfolio reshaping that leans heavily into ambulatory growth.
“The organization is … strengthening its ambulatory surgery capabilities through the planned acquisition of AMSURG, while expanding access to care through additional investments in imaging centers and outpatient physical therapy sites,” the health system shared. “These strategic initiatives enhance Ascension’s overall service footprint, offering greater convenience and improved access for the communities it serves.”
The deal, announced last year, would significantly deepen Ascension’s presence in the ASC market once finalized.
Volume trends reflect the system’s evolving care model. Same-facility outpatient surgery visits dipped 0.2% year over year, even as inpatient surgeries rose 1.7%.
Management attributed the dynamic to portfolio changes and the “appropriate migration of select procedures to outpatient settings,” supported by expansion of ASC partnerships.
Net patient service revenue per equivalent discharge rose 13.8% overall and 8.7% on a same-facility basis, aided by improved managed care rates and a higher-acute case mix index.
Moving forward, it will be worth watching to see how Ascension’s outpatient model evolves, especially as recently installed President and CEO Eduardo Conrado gets further settled into the role.
“These results reflect continued progress in executing the organization’s strategic initiatives,” the health system emphasized. “Ascension is aligning care delivery with evolving patient preferences, including the appropriate migration of select procedures to outpatient settings. Ongoing expansion of Ascension’s Ambulatory Surgery Center partnerships supports this strategy by enhancing access to high-quality, convenient care.”
“Looking ahead, Ascension remains focused on advancing its growth strategy through continued investment in core service lines, expansion of ancillary services, and growth of its ambulatory footprint to better serve patients and communities across its Markets,” Ascension’s supplemental material continued.
