CommonSpirit Releases FY25 Second Quarter Financial Results

CHICAGO – Feb. 14, 2025  – CommonSpirit Health released financial results for its fiscal year 2025 second quarter ended Dec. 31, 2024. The results reflect year-over-year improvement driven by volume growth, reduced labor expense, and lower length of stay.

CommonSpirit reported operating revenues of $10.1 billion and operating expenses of $10 billion, compared to revenues of $9.3 billion and expenses of $9.4 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating income of $135 million and EBITDA of $682 million, margins of 1.3% and 6.7%, respectively, again normalized for the California provider fee. This compares with an EBITDA of $484 million for the same period in the prior year, when adjusted for the California provider fee. 

Despite the high inflation in supplies and other expenses and the challenges in revenue realizations, CommonSpirit’s second quarter financial results reflect continued improvement compared to the first quarter, and the same period the previous year. CommonSpirit continues to face considerable challenges ensuring receipt of its entitled revenue and cash flow for services provided. Revenues continue to be impacted by challenges with payers on denials and timely payments, as well as payment increases that do not keep up with inflation. 

“Our team members’ efforts to provide care in more efficient and effective ways have significantly contributed to this quarter’s financial improvements,” said Chief Financial Officer Dan Morissette. “While this progress is encouraging, we must continue strengthening our financial foundation, ensuring that we can deliver high-quality care to all members of our communities, particularly those who are most vulnerable.”

Overall, patient volumes on an adjusted admission basis increased by 2.8% compared to the same period last year. The acute average length of stay decreased to 4.70 days for the three-month period ending Dec. 31, 2024, down from 4.76 in the same period in the previous year. 

CommonSpirit continues to build on a range of initiatives put in place to address fiscal and operational priorities including a focus on clinical excellence and technological enhancements. As an example, 83% of CommonSpirit hospitals are Leapfrog grade A or B with six hospitals being designated as top performers in the areas of general, rural and teaching facilities. CommonSpirit’s patient experience also continues to improve and has an average Provider Star Rating of 4.9 and a 68.3 Net Promoter Score. Additionally, CommonSpirit has a range of programs, initiatives and areas of focus to support the workforce, and employee engagement scores continue to improve year over year.

Several initiatives are in place to prioritize care continuity and organic growth, including Patient Connection Centers, which use efficient resources to increase patient access and physician productivity; and the continued rollout of CommonSpirit’s enhanced consumer digital experience across the system.

mediainquiries@commonspirit.org