CommonSpirit Health reports Q1 FY27 financial results

CHICAGO - Nov. 13, 2026 - CommonSpirit Health reported financial results for the first quarter of fiscal year 2027, which ended Sept. 30, 2026. Favorable trends in patient volumes, length of stay and labor productivity supported first-quarter results, while overall financial performance reflected ongoing industrywide pressures, including declining case acuity, unfavorable payor mix and higher salary and benefit expenses. 

CommonSpirit reported operating revenues of $10.3 billion for the quarter, up 5.3% over the prior-year period, supported by higher patient volumes and recognition of California provider fee revenue. Operating expenses before special charges totaled $10.9 billion, compared with $10.2 billion in the prior-year period. First-quarter results included $165 million in net California provider fee income following a reassessment of the timing of recognition for state provider fee programs to align revenue and expenses with the periods to which they relate.

The system recorded EBITDA of $77 million, representing a 0.7% margin, and an operating loss before special charges of $544 million, representing an operating margin of -5.3%. The total operating loss was $609 million, including $65 million in restructuring and vendor transition special charges. 

CommonSpirit maintained strong liquidity, with unrestricted cash and investments totaling $18.4 billion, equivalent to 160 days cash on hand, as of Sept. 30, 2026, compared with $18.0 billion, or 159 days cash on hand, as of June 30, 2026.

CommonSpirit’s patient volumes, measured by adjusted admissions, increased 2.8% over the prior-year period, while acute average length of stay decreased from 4.54 to 4.52 days and hospital full-time equivalents per adjusted admission declined 1.4%.

“Our first-quarter performance reflects steady operational progress, even amid persistent cost and reimbursement headwinds, as patients continue to choose CommonSpirit for quality care,” said Chief Financial Officer Michael P. Browning. “We are making deliberate, near-term investments to unify our electronic health record, enterprise resource planning and revenue cycle platforms, while advancing responsible AI adoption to strengthen our system for the long term. Keeping patients at the center of everything we do requires disciplined expense management and fair, timely reimbursement for the care we deliver.”

Under President and CEO Wright Lassiter III, CommonSpirit is implementing an enterprisewide transformation guided by “CommonSpirit 2030: Advancing Humankindness,” designed to simplify operations, broaden access, ensure long-term financial viability and invest in its future under a unified ministry. Recent highlights across its 23 strategic initiatives include:

• Differentiate on humankindness at every touchpoint: After completing half of the transition by the end of the first quarter, CommonSpirit finished bringing select vendor-managed revenue cycle services in-house on Oct. 31, 2026. With CommonSpirit team members serving as patients’ direct point of contact for registration and billing, this move provides a compassionate patient experience while supporting fair and timely revenue collection.

• Unify system services to operate at scale: With 69% of the system now operating on Epic, CommonSpirit has reduced the number of electronic health record platforms from 19 to seven as it works toward a single platform by 2030. In addition, the ministry will move to Workday, which is scheduled to go live on July 1, 2027. As part of its broader effort to create a more consistent experience for patients, CommonSpirit also introduced its unified brand in more than 25% of its markets, most recently in Texas.

• Rebalance, grow and diversify the ministry portfolio: In October 2026, Trinity Health System in Steubenville, Ohio, transitioned to UPMC, and CommonSpirit divested its interest in Mercy Care Plan in Phoenix. In November 2026, CommonSpirit signed a definitive agreement with Altru Health to transfer three CHI St. Alexius facilities in North Dakota. The transaction is expected to close in early 2027.

“Our size as a national health system is only meaningful if we use our reach to deliver better outcomes, broader access and a more connected experience for every patient,” said Lassiter. “Financial sustainability is what makes our mission possible. Through disciplined operations, we are supporting our team members, strengthening our ministry and protecting access to compassionate, high-quality care across the communities we serve.”

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About CommonSpirit Health
Inspired by faith. Driven by innovation. Powered by humankindness. CommonSpirit Health is building a healthier future for all through its integrated health services. As one of the nation’s largest nonprofit Catholic healthcare organizations, CommonSpirit Health delivers more than 30 million patient encounters annually through more than 2,600 care sites and 152 hospitals, in addition to its home-based services and virtual care offerings. CommonSpirit has more than 160,000 team members, 45,000 nurses and 30,000 physicians and advanced practice providers across 24 states and contributes approximately $4.6 billion annually in charity care, community benefits and unreimbursed government programs. Together with our patients, physicians, partners and communities, we are creating a more just, equitable and innovative healthcare delivery system. Learn more at commonspirit.org.