CommonSpirit Releases FY25 First Quarter Financial Results

CHICAGO – Nov. 18, 2024 – CommonSpirit Health released financial results for its fiscal year 2025 first quarter ended Sept. 30. The results reflected volume growth and strong patient outcomes, offset by inflationary pressures and challenges receiving revenue for services provided. 

CommonSpirit reported operating revenues of $9.4 billion and operating expenses of $9.7 billion, compared to revenues of $8.8 billion and expenses of $9.0 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating loss of $331 million and EBITDA of $200 million, margins of -3.5% and 2.1%, respectively, again normalized for the California provider fee. This compares with an EBITDA of $262 million for the same period in the prior year when adjusted for the California provider fee. 

CommonSpirit’s financial performance continues to be impacted by expenses growing at a faster pace than revenue, despite strong volume, lower length-of-stay and higher productivity. Due to continued inflation, supply costs increased 7.3% per adjusted admission and purchased services increased by 6.9% compared to the same period in the prior year. Additionally, CommonSpirit continues to face challenges with payors on high rates of denials and lack of timely payments.

“Our modest revenue increases, while encouraging, affirm our continued focus on receiving the revenue we are entitled to for services provided,” said Chief Financial Officer Dan Morissette. “Our multi-pronged strategy to improve operating performance will ensure we are able to deliver on our mission to improve health in the communities we serve for generations to come.”

CommonSpirit’s volumes on an adjusted admission basis increased 2.9% compared to the same period in the prior year. The acute average length of stay of 4.68 days for the three-month period ended September 30, 2024, was lower than the same period in the prior year of 4.73, primarily due to a focus on timely discharge of patients to the home and partnerships with post-acute providers. Outpatient visits increased 3.7% and ED visits rose 4.0%.

The first quarter marked considerable progress on the organization’s strategic roadmap to enhance quality and access to care, ensure financial viability, and support operational efficiency. Work continues to refine CommonSpirit’s operating model, standardize clinical IT systems, expand ambulatory and virtual care touchpoints, and forge innovative partnerships. Results of these initiatives are expected to continue well into FY26.

CommonSpirit is also enhancing its portfolio and investment strategy, and aligning capital investments for maximum impact. Recent examples include the expanded relationship with Kaiser Permanente in Colorado, and the transfer of ownership of the organization’s San Francisco hospitals to University of California San Francisco Health system (UCSF Health.)

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