CHICAGO – Nov. 15, 2023 – CommonSpirit Health released financial results for its fiscal year 2024 first quarter ended Sept. 30. The results reflected strong volume growth, offset by rising costs which are also impacting many other health care providers.
CommonSpirit reported operating revenues of $8.87 billion and operating expenses of $9.16 billion, compared to revenues of $8.53 billion and expenses of $8.75 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating loss of $291 million and EBITDA of $237 million, a margin of -3.3%- and 2.7%, respectively, again normalized for the California provider fee. This compares with an EBITDA loss of $14 million for the same period in the prior year when adjusted for the California provider fee and CARES PRF funds. Current-quarter results reflect higher labor costs and a rate of inflation that exceeds payers’ reimbursement rates.
Volumes increased in the quarter, with adjusted admissions on a same-store basis rising 4.8% compared to the prior year quarter. The average length of acute stay decreased from 4.92 days to 4.74 days as a result of continued efforts to manage the continuum of care. Outpatient visits increased 3.8% and ED visits rose 2%.
In the first quarter, management continued to identify new initiatives to drive efficiency and promote financial stability in areas including supply chain, pharmacy, payer contracting and adherence, and purchased services. Results of these initiatives are expected to continue beyond FY24.
Building on the momentum achieved in the prior quarter, CommonSpirit management is prioritizing market-based growth strategies. Among these are developing ambulatory offerings, providing consumers at all touchpoints with exceptional experiences and continuing to develop integrated delivery networks to ensure we are meeting the unique needs of each of our communities.
“Despite significant industry and economic headwinds, CommonSpirit was able to extend the momentum achieved in the previous quarter,” said Chief Financial Officer Dan Morissette. “While this is encouraging, we take nothing for granted. More efforts are underway to provide the strong financial foundation this health ministry needs to provide care to everyone in the communities we serve, including the most vulnerable.”