St. Louis-based Ascension recorded an operating loss of $490.9 million (-1.6% operating margin) in fiscal 2025, an improvement from an operating loss of $1.8 billion (-6.3% margin) in 2024, according to its Sept. 17 financial report.
“The $1.3 billion year-over-year improvement in operating results was driven by stronger patient volumes, improved labor productivity, and careful management of non-labor expenses,” Ascension’s executive vice president and CFO Saurabh Tripathi said in a Sept. 17 news release.
The operating results include $81 million in one-time, non-cash write-downs and non-recurring losses in 2025, compared to $402 million in 2024.
Ascension’s total revenue declined 11.3% year over year to $25.3 billion for the 12 months ended June 30. The system’s same-facility total operating revenue — adjusted for comparability due to portfolio changes — increased 6.6%.
Net patient service revenue decreased 12.9% year over year. Net patient service revenue per equivalent discharge increased 8.8% overall or 4.6% on a same facility basis.
Total operating expenses decreased 14.1% year over year to $25.83 billion in 2025. Operating expenses increased 0.1% on a same-facility basis over the prior year.
Total salaries, wages and benefits decreased 15.2% year over and 1.5% on a same facility basis. The same facility decreases were driven by the system’s labor efficiency initiatives focused on stabilization of staffing and the workforce resulting in reduced turnover rates.
Supply chain expenses decreased 14.9% year over, but increased 2.7% on a same facility basis primarily due to high-cost implant, surgical, procedural and hemophilia volumes in certain markets, along with inflationary pressures.
Ascension recorded a net income of $918 million in 2025, up from a net loss of $1.1 billion last year.
“Our FY25 results reflect the disciplined execution of our strategy and the progress we have made across the organization,” Ascension President Eduardo Conrado said in the release. “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.”
