St. Louis-based Ascension narrowed its reported operating loss by $371 million in fiscal 2026, while its core operations generated positive operating income as stronger revenue, higher patient volumes and operational improvements strengthened performance, according to financial documents published Sept. 16.
Ascension reported a $120 million loss from operations (-0.2% margin) for the fiscal year ending June 30, 2026, compared with a $491 million loss (-1.6% margin) a year earlier. The reported loss included interest expense tied to bonds issued ahead of the health system’s June acquisition of Amsurg. Investment income generated by those bond proceeds was recorded as nonoperating income rather than operating income, according to the health system.
Excluding the Amsurg-related bond interest and transaction costs, Ascension said its core operations generated $109 million in positive operating income for the year.
Net income rose to $1.5 billion from $918 million, while recurring operating EBIDA increased $388 million to $1.2 billion, representing a 5% margin.
On a same-facility basis, income from operations improved by $696 million year over year and net income increased $826 million to $1.4 billion. Same-facility operating revenue rose 9.8% to $24.1 billion.
“Three years ago, we set out to strengthen Ascension so we could better serve our patients and communities,” Ascension President and CEO Eduardo Conrado said. “Our results this year show the significant progress we have made. We have improved our financial performance, expanded access, advanced our clinical capabilities, and grown our ambulatory and community-based network.”
Mr. Conrado reinforced that message in a Sept. 16 LinkedIn post, saying the financial gains are intended to support investments in caregivers, access and care delivery.
“A strong financial foundation allows us to continue investing in our caregivers and serving the people and communities who depend on us,” Mr. Conrado wrote. “Our teams are bringing preventive care closer to home, increasing access to primary and specialty care, and helping people access affordable medications. We are also opening and expanding sites of care so patients can get the right care in the right setting. That is why financial performance matters. It allows us to invest in access, support our caregivers, and serve people for years to come.”
Ascension’s recurring operating loss narrowed to $57 million from $410 million, improving its recurring operating margin to -0.2% from -1.6%. Same-facility net patient service revenue increased 10.5% to $21.5 billion, while equivalent discharges rose 1.3%. Ascension also reported an 88% 90-day retention rate and reduced reliance on agency staffing.
The 91-hospital system acquired Amsurg in June, expanding its ambulatory platform to more than 312 surgery centers.
“During FY26, our same-facility operational performance improved by $696 million; we turned positive operating margin from core operations and achieved a 5% recurring operating EBIDA margin, while the same-facility net income increased 141% year over year,” Saurabh Tripathi, executive vice president and CFO of Ascension, said. “These results reflect disciplined execution across the ministry and provide greater flexibility to invest in our strategic priorities, while maintaining a strong financial foundation.”
Ascension ended the fiscal year with $15.1 billion in unrestricted cash and investments and 233 days cash on hand. It also reported about $2.6 billion in community benefit on a same-facility basis, including $1.1 billion in care for people living in poverty and other community programs and more than $1.5 billion in unreimbursed Medicare costs.
