St, Louis-based Ascension reported an operating loss of $52.6 million (-0.9% margin) for the three months ending Dec. 31, 2025, a more than $91 million improvement on the $143 million operating loss (-2.2% margin) reported in the same quarter the previous year.
For the six months ending Dec. 31, 2025, the faith-based system posted a $139 million operating loss (-1.1% margin), compared to a $365 million loss (-2.7% margin) through the same six-month period in fiscal year 2025 — a $226 million improvement year over year.
“We are building a more consistent and predictable way of operating, putting people first by making care easier to access, easier to navigate, and delivered in the right setting at the right time,” Ascension President and CEO Eduardo Conrado said.
The results reflect continued financial stabilization for Ascension, which has spent the past couple of years reshaping its portfolio and operating model through strategic divestitures and market exits. Over that period, the system sold or consolidated hospitals across multiple markets to strengthen performance and streamline operations, while also bolstering leadership at both the national and regional levels.
Ascension has reduced its hospital portfolio from roughly 140 hospitals three years ago to 90 wholly owned or consolidated hospitals, according to financial documents published Feb. 13. It also maintains noncontrolling interests in 29 additional facilities.
The system now appears poised to reenter growth mode. Ascension is expected to acquire AmSurg in a deal reportedly valued at approximately $3.9 billion.
Performance improved across Ascension’s acute care hospitals in the fiscal second quarter, driven in part by higher patient volumes and access-focused strategies, according to the system. For the six months ending Dec. 31, 2025, same-facility revenue increased 10% year over year, supported by growth in ambulatory services, service lines and community-based care settings.
Ascension also reported a 1.9% improvement in same-facility length of stay, reflecting efforts to deliver more efficient care while maintaining quality outcomes.
Saurabh Tripathi, executive vice president and CFO of Ascension, attributed the stronger performance to improved efficiency and rising demand across key services.
“Stronger operating results are being driven by more efficient care delivery and increased demand across key services, allowing us to reinvest in access, clinical capabilities and community-based care,” Mr. Tripathi said. “We continue to exercise strong discipline in capital deployment as we expand clinical care to our communities.”
After accounting for nonoperating items, such as investment returns, Ascension reported a net income of $270.2 million during the three months ending Dec. 31, 2025, up from a $110.2 million net loss in the same quarter the prior year. Net income for the six-month period was $607.9 million, up from $277 million.
The system reported a strong liquidity position, with net unrestricted cash and investments totaling $18.2 billion as of Dec. 31, 2025 — representing approximately 41% of total assets. Days cash on hand reached 284 days, an increase of 56 days since June 30, 2025.
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