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CommonSpirit Health Releases FY2023 Q2 Financial Results

Posted in: News , Press releases , Announcements  3 minute read time

CommonSpirit Health released financial results for its fiscal year 2023 second quarter ended Dec. 31.


(CHICAGO) – CommonSpirit Health released financial results for its fiscal year 2023 second quarter ended Dec. 31. The results reflected strong volume growth, as well as rising costs and staffing shortages which are also impacting many other health care providers.

CommonSpirit reported operating revenues of $8.30 billion and operating expenses of $8.77 billion, compared to $8.88 billion of revenues and $8.96 billion of expenses for the same period last year. The health system recorded an operating loss of $474 million and EBITDA of $23 million, a -5.7% and 0.3% margin, respectively. Results continued to be impacted by the pandemic, labor shortages, higher staffing costs, and inflation, as well as by the ransomware attack the organization experienced in October 2022.

Volumes increased in the quarter, with adjusted admissions on a same-store basis rising 3.1% compared to the prior year’s quarter. Outpatient visits increased 2% and ED visits rose 5%.

CommonSpirit is taking a number of steps to bolster its financial sustainability. This includes a continued focus on reducing costs, operating more efficiently, and scaling programs across the organization to create a better experience for patients and consumers, helping retain employees and promoting staff and clinician wellness, and driving clinical excellence. 

CommonSpirit also continues to invest in growing and diversifying its care network. On Wednesday the organization announced that it would acquire the care sites in Utah owned by Steward Health Care, which includes 5 hospitals and more than 40 clinics. The move represents a significant long-term growth opportunity and extends CommonSpirit’s reach into a new region with an established continuum of ambulatory, acute and post-acute services. The Utah sites will be managed by Centura Health, and the transaction is expected to close later in 2023.

“Despite a challenging economic climate, CommonSpirit is continuing to deliver outstanding care to our communities. And we are working to adapt to the changing expectations of our patients and our teams,” said CommonSpirit Chief Financial Officer Dan Morissette. “We are meeting our challenges head on by scaling programs that drive growth, create a better experience for patients, and support our employees. At the same time we are working hard to reduce our costs so we can sustain these essential services in the long term.”

 

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About CommonSpirit Health

CommonSpirit Health is a nonprofit, Catholic health system dedicated to advancing health for all people. It was created in February 2019 by Catholic Health Initiatives and Dignity Health. With its national office in Chicago and a team of over 150,000 employees and 25,000 physicians and advanced practice clinicians, CommonSpirit operates 138 hospitals and more than 2,000 care sites across 21 states. In FY 2022, CommonSpirit had revenues of $33.9 billion and provided $4.9 billion in charity care, community benefit, and unreimbursed government programs. Learn more at www.commonspirit.org.

 

Publish date: 

Wednesday, February 15, 2023

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