KEY TAKEAWAYS: Ochsner Health revenue rose 9% to $8.4 billion in 2025, while LCMC Health grew 12% to $3.9 billion. Growth was driven by higher patient volume, expanded service lines and operational efficiencies. Systems are investing heavily in infrastructure, including Ochsner’s $300M child ren’s hospital project. Healthcare leaders warn reimbursement pressures and workforce challenges remain key industry issues.   Louisiana’s largest nonprofit health systems reported strong financial performance in 2025, as increased patient volume, expanded service lines, and continued operational investments drove revenue growth across the region’s healthcare sector. Ochsner Health reported revenue growth from $7.7 billion in 2024 to $8.4 billion in 2025, a 9% increase, while LCMC Health grew revenue from $3.48 billion to $3.9 billion, representing a 12% year-over-year gain. Leaders at both systems pointed to organic growth, expanded access to care, and streamlined operational efficiency as primary drivers behind the gains. “Our revenue increase was driven largely by organic growth and patient volume,” said Jim Molloy, Executive Vice President, CFO, and Treasurer of Ochsner Health. “Access to care remains a national challenge, so being able to serve more patients across our system is a significant achievement. We saw patient flow volumes increase by roughly five percent across our hospitals and clinics.” The nonprofit Ochsner Health provides care at 47 hospitals and more than 370 health and urgent care centers across Louisiana, Mississippi, and the Gulf South. In 2025, more than 40,000 Ochsner team members and 5,000 employed and affiliated physicians cared for more than 1.6 million people from every state in the nation and 65 countries. “What makes the year particularly notable is that we achieved that growth despite the significant disruption caused by the January snowstorm. Our teams worked incredibly hard to recover that volume and finish strong,” Molloy said. “We focused heavily on improving patient access and throughput. We made meaningful gains in care quality and cost efficiency, which has positioned us well for continued system-wide growth moving forward.” LCMC Health is a Louisiana-based, not-for-profit hospital system managing Children’s Hospital, East Jefferson General Hospital, New Orleans East Hospital, Touro, University Medical Center New Orleans, West Jefferson Medical Center, Lakeside Hospital, and Lakeview Hospital. Ryan Hildebrand, Chief Administrative Officer at LCMC Health, said the system’s nearly half a billion in revenue growth was fueled by strategic market expansion and a deliberate move to streamline its system-wide operations and services. “The primary revenue drivers were our expanded footprint in the region and an unwavering focus on high-acuity service lines, such as neuroscience, heart and vascular care, and cancer care,” said Hildebrand. “2025 stands as one of our financially strongest years on record, providing us the necessary fiscal stability to reinvest in our people, our technology, and the communities that rely on us for care.” Capital investment remained a defining theme throughout 2025 for both health care systems. Ochsner Health advanced construction of a five-story, 343,000-square-foot pediatric and family-centered facility – the Gayle and Tom Benson Ochsner Children’s Hospital – a $300 million investment and the largest construction project in system history. Scheduled to open in early 2028, the facility will consolidate pediatric services across more than 30 specialties while expanding emergency, neonatal intensive care, and critical care capacity. Ochsner is also preparing to open the Debra H. and Robert J. Patrick Neuroscience Institute in late 2026, a 132,000-square-foot facility integrating outpatient neuroscience care, behavioral health services, and advanced rehabilitation under one roof. LCMC Health completed eight years’ worth of capital improvements totaling $774 million by the end of 2025, including a $300 million expansion of Manning Family Children’s, a $216 million investment at East Jefferson General Hospital, $130 million in upgrades at West Jefferson Medical Center, systemwide infrastructure improvements, and expansion of the Touro Ambulatory Surgery Center. Manning Family Children’s will add a new 60-bed Level IV Neonatal Intensive Care Unit, expected to open in 2027. It will nearly double current capacity while expanding specialized neonatal care across the region. Hildebrand highlighted several key clinical milestones achieved. Manning Family Children’s became the first hospital in Louisiana to offer sickle cell gene therapy treatment; University Medical Center’s burn center gained recognition from the American Burn Association for its spray-on skin technology; and East Jefferson General Hospital earned accreditation for both LVAD procedures and heart transplants. LCMC Health expanded cancer, behavioral health, and women’s health services throughout the region. “LCMC Health had many exciting achievements and milestones in 2025, from cutting-edge medical innovations to major investments in expanding services and improving infrastructure,” Hildebrand said. “We’re driven by our commitment to meet patients where they are, expanding access and ensuring that our growth is matched by the quality of care.” National recognition followed performance improvements across both systems. Ochsner Medical Center – New Orleans was named the No. 1 hospital in Louisiana for the 14th consecutive year by U.S. News World Report, while Ochsner Children’s Hospital earned national Top 50 rankings in pediatric cardiology and gastroenterology specialties. Multiple Ochsner facilities received maternity care and cardiovascular excellence recognitions, and several hospitals were named among Newsweek’s “America’s Best-in-State Hospitals”. LCMC Health also earned several national workplace recognitions, appearing on Becker’s Hospital Review’s “150 Top Places to Work in Healthcare,” Newsweek’s “America’s Greatest Workplaces in Health Care,” and Forbes’ “America’s Best In-State Employers.” Even as performance strengthened, healthcare leaders emphasized mounting industry pressures tied to reimbursement and workforce availability. “One of the biggest challenges facing healthcare right now is the evolving Medicaid landscape and reimbursement pressures across the industry,” Molloy said. “We’re preparing well in advance for program changes that will reduce funding in the coming years, while still ensuring we can continue providing care to our patients.” Molloy said that reimbursement from both government and commercial payers is not keeping pace with rising labor and operating costs. “That reality is forcing health systems nationwide to become more efficient and cost-effective, and it’s an area where we’ve placed significant focus heading into 2026,” he said. Hildebrand echoed similar concerns. “In 2025, our primary challenge was maintaining the stability of care while navigating ever-shifting federal and state policies. These regulatory changes demand constant agility to ensure that we remain compliant without sacrificing the quality or accessibility of our services.” Looking ahead, both organizations identified care access and patient experience as defining priorities for 2026. Ochsner has introduced patient journey mapping to better understand and remove friction points throughout the care process. “As we look ahead to 2026, our focus really comes down to two priorities – access and experience,” Molloy said. “We must ensure patients can get appointments and care in a timely manner regardless of their needs. We are investing heavily in improving the overall patient experience. As we improve access, reduce wait times, and continue elevating quality, it strengthens both patient outcomes and the sense of purpose that drives our teams every day.” Entering 2026, LCMC Health’s top strategic priority remains improving patient access and customer experience across its system by meeting challenges head-on rather than reacting to them, Hildebrand said. “The healthcare landscape is moving at a breakneck pace. Therefore, our decision-making can be heavily influenced by any of these conditions, from economic shifts to constantly evolving regulatory requirements,” he said. “As responsible leaders, we aren’t just watching these market conditions; we are integrating them into our core strategy to ensure that LCMC Health remains agile, accessible, and deeply connected to the communities we serve.” ...read more read less