CommonSpirit Health released financial results for its fiscal year 2024 third quarter ended Mar 31

(CHICAGO) – May. 15, 2024 – CommonSpirit Health released financial results for its fiscal year 2024 third quarter ended Mar. 31, 2024. The results show improvement on a year-to-date basis versus prior year, driven in large part by increased volumes, efficiency gains, and reductions in length-of-stay. Earnings improvements continue to be partially offset by the ongoing impact of salary and supply cost inflation, which still exceeds payor reimbursement rate increases.

CommonSpirit reported operating revenues of $9.25 billion and operating expenses of $9.62 billion for the quarter ended Mar. 31, 2024, compared to revenues of $8.45 billion and expenses of $8.92 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating loss of $365 million (-3.9% margin) and EBITDA of $169 million (1.8% margin), again normalized for the California provider fee, compared to an EBITDA margin of -0.2% for the same period in the prior year. 

For the nine-month period ending on March 31, 2024, CommonSpirit’s EBITDA was $914 million with an EBITDA margin of 3.3%, when normalized for the California provider fee. During the same period in the prior year, CommonSpirit’s EBITDA was $293 million, with an EBITDA margin of 1.2%.   

On a same-store basis, volumes increased in the quarter, with adjusted admissions rising 4.5% and outpatient visits increasing 2.0%, compared to the same period in the prior year. Emergency Room visits increased 3.9% compared to the same period in the prior year. 

Also in the third quarter, CommonSpirit maintained its momentum on expanding its ambulatory footprint, driving essentiality in its markets, and enhancing its workforce retention programs. We expect both short- and long-term results on all of these efforts.

“We are pleased to see the continued improvement in our financial performance,” said CommonSpirit’s Chief Financial Officer Dan Morissette. “Our teams are squarely focused on maximizing our opportunities for growth, while simultaneously minimizing our costs. By making these strategic adjustments, we are ensuring that our mission to provide care to all in our communities, especially the underserved, will continue today, tomorrow and for decades to come.”