CommonSpirit Releases FY26 First Quarter Financial Results

CHICAGO – Nov. 14, 2025 – CommonSpirit Health released financial results for its fiscal year 2026 first quarter ended Sept. 30. The results reflected solid revenue growth, offset by continued inflationary pressures and reimbursement challenges. 

CommonSpirit reported operating revenues of $10.3 billion and operating expenses of $10.5 billion, compared to revenues of $9.4 billion and expenses of $9.7 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating loss of $165 million and EBITDA of $360 million, margins of -1.6% and 3.5%, respectively, again normalized for the California provider fee. This compares with an EBITDA of $200 million, or a 2.1% margin, for the same period in the prior year. 

Despite strong volume, salary cost management, length-of-stay improvements, and higher productivity, CommonSpirit’s financial performance continues to be impacted by expenses growing at a faster pace than revenue. A significant impact to the organization’s revenue comes in the form of challenges with payers on denials and timely payments, and payment increases from both government and non-government payers that do not keep up with inflation. 

CommonSpirit’s volumes on an adjusted admission basis increased 6.0% compared to the same period in the prior year. The acute average length of stay of 4.54 days for the three-month period ended September 30, 2025, was lower than the same period in the prior year of 4.68. Outpatient visits increased 3.7% and ED visits decreased 1.9%.

Costs increased with supplies per adjusted admission climbing more than 3% compared to the same period last year, primarily due to higher surgical volume and the continued inflationary impact on pharmaceuticals and surgical and medical supplies. CommonSpirit is working to reduce supply costs through renegotiation of supply chain contracts and vendor consolidations.

Progress continues on key strategic goals, including launching enhanced online scheduling for employed physicians and advanced practice providers in California, Arizona and Nevada through a new scheduling platform. Results have been impactful, generating approximately 4,670 booked appointments during the first quarter of fiscal year 2026. Providing innovative, high quality, safe care remains a consistent focus. In the first quarter alone, CommonSpirit Health received several national accolades for its innovation, quality and safety initiatives, including:

• Eighty-six percent of eligible CommonSpirit hospitals received A or B Leapfrog safety grades, compared to 58% of hospitals nationwide.
• 55 acute care CommonSpirit hospitals were included in U.S. News & World Report’s “Best Hospitals” rankings.
• 43% of eligible CommonSpirit hospitals earned 4 or 5 CMS Star ratings, compared to the national average of 37%.
• CommonSpirit was named an American Hospital Association Quest for Quality Award Finalist
• CommonSpirit received the 2025 ATA Nexus Transformational Leadership Award for its Virtual Integrated Care model

Building on this progress in the face of industry headwinds, CommonSpirit has embarked upon a systemwide transformation journey with a focus on accelerating results within 12-18 months and an overall 24-30 month implementation plan. The project aims to accelerate meaningful improvement in operating and financial performance and accelerate the transition to a more sustainable cost structure and operating model.

The project will look at every aspect of operations across CommonSpirit, building upon results of prior work, accelerating in-flight initiatives and identifying new performance improvement opportunities.

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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 20 million patient encounters annually through more than 2,300 care sites and 138 hospital-based locations, in addition to its home-based services and virtual care offerings. CommonSpirit has approximately 160,000 employees, including 45,000 nurses, and 25,000 physicians and advanced practice providers across 24 states and contributes more than $5 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.