Ascension shifts investment focus to outpatient facilities to match current trend

St. Louis-based Ascension will focus part of its future investments on outpatient services, reflecting the nationwide move away from inpatient care.

As the system of 139 hospitals reported a $410 million operating loss in the second half of 2022 on March 10, it has focused on the growing importance of outpatient and emergency visits as part of its overall service offering.

While visits to outpatient surgeons increased by 3.5 percent in the six months to December 31, 2021, for example, there was a further 3.8 percent increase in the six-month period ending December 31, 2022.

Thus, future investments will change accordingly, Ascension said.

“Additional investments are also being made in our outpatient surgical center, imaging and outpatient physical therapy centers, which expand Ascension’s range of services and provide greater consumer convenience,” management said in a financial statement. “In line with industry trends, the system is undergoing a transition from inpatient to outpatient procedures, which has accelerated in part during the pandemic.”

According to a March 2 report, the vast majority of 95 percent of healthcare leaders expect outpatient care to increase in 2023.

Ascension is also working on initiatives to further reduce costs driven by sustained labor and inflationary pressures. The System Payroll, Payroll, and Benefits Program decreased 2 percent, or $148 million, in the six months ended December 31, 2022, from the previous six-month period.