Ascension Acquires AmSurg in $3.9 Billion Deal, Accelerating Outpatient Care Shift

Ascension, one of the largest Catholic healthcare systems in the United States, has announced its acquisition of AmSurg, a leading ambulatory surgery management services company. The deal, reportedly valued at $3.9 billion, marks a significant step in Ascension's strategic shift towards expanding its outpatient care capacity.

Acquisition Details and Strategic Implications

The acquisition will bring more than 250 outpatient ambulatory surgery centers (ASCs) across 34 states under Ascension's network. This move aligns with the healthcare industry's broader trend of transitioning from inpatient to outpatient care delivery models.

Joe Impicciche, CEO of Ascension, emphasized the alignment of this acquisition with the organization's mission, stating, "This acquisition is deeply aligned with Ascension's Mission to provide compassionate, personalized care to all, especially those most in need. It reflects our steadfast commitment to expanding access to care in a way that is more affordable, more local, and more centered around the dignity and well-being of those we serve."

Preserving Physician-Led Governance

Ascension has committed to maintaining AmSurg's "proven model of physician-led joint ventures and governance." This approach aims to ensure that clinical leadership remains central to each center's success, empowering physicians to shape care delivery in their communities.

Jeff Snodgrass, CEO of AmSurg, expressed enthusiasm about the deal, describing it as "an exciting next chapter for AmSurg."

Financial Context and Industry Trends

The acquisition comes at a time when Ascension is navigating financial challenges. The nonprofit reported a $1.8 billion operating loss and a $1.1 billion net loss for its 2024 fiscal year, which ended on June 30, 2024. However, recent quarters have shown signs of improvement, with the system reporting $195 million in net income over the past nine months despite an operating loss of $466 million.

Eduardo Conrado, President of Ascension, highlighted the strategic importance of the acquisition in the context of evolving healthcare trends: "The healthcare landscape is changing rapidly, and Ascension is leading the way in adapting to that change. The shift from inpatient to outpatient care is accelerating nationwide. By investing in AmSurg's strong ASC network, we are proactively responding to this transformation."