CommonSpirit Releases FY26 Third Quarter Financial Results

CHICAGO (May 15, 2026) – CommonSpirit Health has released financial results for its fiscal year 2026 third quarter ended March 31, 2026. Although this quarter showed positive trends in volumes and length of stay, the results reflect the continued impact of industry-wide pressures, including a sharp increase in supply costs and ongoing challenges with payers related to payment delays. 

CommonSpirit reported operating revenues of $10.0 billion and operating expenses before special charges of $10.6 billion for the quarter, compared to revenues of $10.0 billion and expenses of $10.1 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating loss before special charges of $578 million (-5.8% margin) and EBITDA before special charges of $71 million (0.7% margin), again normalized for the California provider fee, compared to an operating loss before special charges of $85 million (-0.9% margin) and EBITDA before special charges of $434 million (4.3% margin) for the same period in the prior year. 

For the three and nine-month periods ended March 31, 2026, CommonSpirit’s volumes on an adjusted admission basis increased by 3.2% and 4.3%, respectively, compared to the same periods in the prior year. Additionally, the acute average length of stay was 4.70 days and 4.62 days for the three and nine-month periods ended March 31, 2026; lower than 4.83 and 4.74, respectively, for the same periods in the prior year. 

Also, in May 2026, CommonSpirit received $383 million in Federal Emergency Management Agency (FEMA) grant revenue for reimbursement of expenditures incurred during the COVID-19 pandemic. This one-time item will be recorded in the fourth quarter of fiscal year 2026.

“Our third-quarter performance reflects a dynamic healthcare landscape, where we're seeing positive demand for our services alongside persistent financial headwinds,” said Chief Financial Officer Michael P. Browning. “Our focus remains firmly on long-term sustainability. Through innovations in care delivery and targeted operational improvements, we are building resilience and ensuring we can continue to achieve our strategic goals.” 

CommonSpirit continues to champion key strategic priorities that not only enhance financial results, but ensure superior patient experience while maintaining exceptional clinical standards: 

• CommonSpirit again exceeded the national average in Leapfrog’s spring 2026 Hospital Safety Grades, with 86% percent of eligible CommonSpirit hospitals receiving an A or B grade. 

• CommonSpirit has exceeded the national average in the recently released Centers for Medicare and Medicaid Services (CMS) 2026 Hospital Star Ratings for the sixth consecutive year. 

• CommonSpirit was named one of America’s Innovative Companies in 2026 by Fortune Magazine for measurable results with virtually integrated care, improving access and patient safety through a virtual hospital model, robotic process automation for cancer screening, and an internally developed Emergency Department Operations Dashboard, which has resulted in better patient experience and improved workflows for staff.

• CommonSpirit continues to implement a reimagined digital experience featuring one content engine, enhanced online scheduling, and the first system-wide Find a Doctor and Find a Location service; and is focused on integrating all market-based sites onto the platform during fiscal year 2026.

CommonSpirit’s Project ImpACT, a multi-year, system-wide initiative to improve performance, optimize operations, and invest in innovation, is building the foundational strength necessary for future success and sustainability. Project ImpACT strategically prioritizes areas with the greatest potential for financial return, and initiatives have launched in several areas including IT, business and clinical operations, physician enterprise, and revenue optimization. Additional performance improvements in the areas of enhanced clinical operations, examining expenditures, and optimizing team collaboration will continue to be implemented throughout the remainder of fiscal year 2026.