Ascension wrapped its 2025 fiscal year with a $490.9 million operating loss (-1.9% operating income) but a $917.7 million net income, an improvement over the prior year it attributed to greater volumes, improved labor productivity and a tighter rein on non-labor spending.
The major Catholic nonprofit is coming off of a $1.8 billion operating loss in fiscal 2024 and a $3 billion operating loss in fiscal 2023, though those dip to $1.4 billion and $1.5 billion, respectively, when removing impairment and nonrecurring losses. It’d also suffered a major cybersecurity incident at the end of fiscal 2024, the recovery from which leadership said spanned multiple quarters and included consistent volume recovery.
“We have been intentional in directing resources toward initiatives that generate measurable impact, from service line growth to process redesign, while also ensuring both stewardship and sustainability,” Saurabh Tripathi, executive vice president and chief financial officer, said in a statement. “This combination of operational discipline and strategic investment increases our flexibility to expand access, enhance services, and ensure the commitment to our mission.”
Ascension, which owns or has interests in about 120 hospitals and other healthcare facilities across 16 states, logged $25.3 billion of total operating revenue in fiscal 2025, a roughly $3.2 billion decline (-11.3%) largely reflecting the system’s recent divestments.
However, same-facility daily volumes rose between 5% to 7% since the fourth quarter of the prior year due to “strategic investments in ambulatory services, service line development, and community-based care.” The organization also highlighted a 2.3% improvement in same-facility length of stay, coinciding with a 1.6% increase in acuity, which it said highlights more efficient, timely care delivery, helping patients return home sooner while maintaining quality outcomes.”
Ascension’s total operating expenses dropped by nearly $5.2 billion (-14.1%) year over year, to $25.8 billion. That included a 15% decline in salary and wages spending, a 13.9% drop in purchased services spending and a 14.9% reduction in supplies spending. The organization also noted “record associate retention,” which it said stabilizes its workforce and maintains quality care delivery.
As of June 30, 2025, Ascension now has 228 days of cash on hand, up 34 days from the year prior. It also reported a total of $3.4 billion in community benefits across the fiscal year, and in a release highlighted programs in Nashville providing free services to uninsured and underinsured residents, as well as an Illinois partnership with the Greater Chicago Food Depository’s mobile produce program.
Ascension’s upward operating trajectory comes alongside new pushes toward efficient innovation and ambulatory care. For the former, it announced last month the launch of a Clinical Innovation Institute to vet and deploy new technologies across the Catholic nonprofit. In June, it announced a major deal reportedly valued at $3.9 billion to acquire ambulatory surgery management services company AmSurg and its more than 250 outpatient sites.
“Our FY25 results reflect the disciplined execution of our strategy and the progress we have made across the organization,” Eduardo Conrado, president and the on-deck CEO of Ascension, said in a statement. “That discipline is driving efficiency, strengthening operations, and positioning Ascension for sustained growth. 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. This progress gives us the momentum to deliver on our mission in new and better ways and to continue providing high-quality care to more people, in more places.”