JPM26: Ascension CEO Says AmSurg Deal Opens New Markets, Physician Partnerships

The deal, announced last summer, adds AmSurg’s footprint of more than 250 managed ambulatory surgery centers (ASCs) across 34 states.

Ascension’s $3.9 billion agreement to acquire ambulatory surgery center operator AmSurg will allow the nonprofit health system to enter 25 new markets and deepen partnerships with independent physicians and health systems, President and CEO Eduardo Conrado said at the 2026 J.P. Morgan Healthcare Conference.

The deal, announced last summer, adds AmSurg’s footprint of more than 250 managed ambulatory surgery centers (ASCs) across 34 states. Conrado said the transaction creates a pathway for Ascension to expand its presence beyond its core regions without building or acquiring additional acute care hospitals.

In markets where Ascension already operates, AmSurg’s existing centers will help the system strengthen care networks and shift lower-acuity procedures away from hospitals. This approach supports efforts to move cases into lower-cost settings that are often preferred by patients, while allowing hospitals to focus on higher-acuity services. Conrado also noted that new wholly owned ASCs in Ascension’s core markets could help address a potential rise in uninsured patients.

In the 25 new markets created by the acquisition, Ascension does not plan to establish acute care facilities. Instead, Conrado said the system will use ASCs as a platform to collaborate with independent physicians and partner with local health systems. As a nonprofit organization, Ascension expects to position itself as a preferred ASC partner rather than a direct hospital competitor in those regions.

Following the acquisition, Ascension is expected to become the country’s third-largest ASC platform, with more than 300 centers, and the seventh-largest health system by hospital footprint, including 95 wholly owned hospitals and 26 joint ventures.

“The ambulatory space has a 10%-plus CAGR going forward, and then our acute side, for the markets that we’re in, about 3%,” Conrado said in an interview with Fierce Healthcare. He added that the combined portfolio provides growth momentum as the system prepares for potential market disruptions.

The transaction is expected to close this quarter, though Ascension has not disclosed a specific timeline. Financial terms beyond the purchase price have not been released.

Beyond the AmSurg deal, Ascension highlighted improvements in its operating performance following disruptions from a major cyberattack. Between fiscal 2024 and fiscal 2025, the system reported a $1.3 billion year-over-year improvement in operating margin and an increase in recurring operating EBITDA from a $62 million loss to an $837 million gain.

Ascension is targeting operating income margins of 0.5% for the current fiscal year, approximately 2% by fiscal 2027, and about 3% by fiscal 2028. Planned merger and acquisition activity could lift operating margins to roughly 4% by that time, translating to an estimated $1.1 billion to $1.2 billion in operating income.

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