CommonSpirit Health releases FY2024 year-end results

CHICAGO – Sept. 26, 2024 – CommonSpirit Health reported revenues of $37 billion for its 2024 fiscal year, which ended June 30, an increase of 8.2% over the prior year. EBITDA was $1.3 billion, or a 3.5% margin and an improvement over the 2023 fiscal year, when EBITDA was $748 million, or a 2.2% margin.  Expenses were $37.8 billion in fiscal year 2024, a 7% increase over the prior year, resulting in an operating loss of $875 million, or a -2.4% operating margin. All financial results are normalized for the California Provider Fee program.

Performance in Q4 was particularly improved, with an EBITDA of $364.8 million and an EBITDA margin of 3.8% as a result of continued focus on volume growth, reducing labor costs, enhancing revenue yield, and optimizing length of stay.   

The improvement in CommonSpirit’s fiscal year 2024 financial performance is primarily due to strong volume with a reduction in labor costs and higher productivity. Adjusted admissions increased by 6.6% over the previous year, and the average length of stay decreased due to a focus on timely discharge to home and partnering with post-acute providers.

“While we are encouraged by the improvement in our finances for fiscal year 2024, we know there is more work to be done to accelerate this trajectory,” said CommonSpirit CFO Dan Morissette. “We have focused on operational excellence and strategic growth, and we will continue to lean into these areas as we work to expand on these successes.” 

CommonSpirit’s modest revenue increases were offset by continued challenges with payers on denials and timely payment.  CommonSpirit has taken a firm stance on contract renewals so payers absorb a share of inflation, and processes and terms are improved to ensure providers get paid for the care they deliver.  

CommonSpirit is further aligning services to meet and exceed patient expectations. CommonSpirit’s patient connection centers were a key driver of volume growth in fiscal year 2024, using efficient resources to connect patients and providers through a single point of access. CommonSpirit also launched the first phase of its Consumer Digital Experience on CommonSpirit.org that provides an integrated, consistent, and seamless consumer experience, including online scheduling for employed physicians and advanced practice providers in California, Arizona, and Nevada. 

Additionally, as clinical innovation and patient preference continue to drive the transition of care to lower acuity settings, CommonSpirit continues to expand ambulatory care capacity, with nearly 60 sites added in fiscal year 2024. 

CommonSpirit also saw continued excellence in quality, patient safety, and patient experience in fiscal year 2024, supported by the implementation of AI-assisted protocols for sepsis and stroke, improved management of chronic conditions, and increased annual wellness visits.

“We've made significant strides in improving efficiency, expanding our reach and enhancing the care we provide to our communities,” Morissette said. “It is clear that serving others and improving our patients' health outcomes and experience also improves CommonSpirit's financial health.”

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