Chicago-based CommonSpirit Health reported an operating loss of $85 million (-0.9% operating margin) in the third quarter of 2025, compared to an operating loss of $365 million (-3.9% margin) during the same period last year.
Note: Figures are adjusted to normalize the California Provider Fee Program net income.
Six things to know:
1. CommonSpirit said in a May 15 news release that despite positive indicators such as strong volumes, lower length of stay and higher productivity, its “finances continue to be impacted by expenses growing at a faster pace than revenue, and ongoing challenges with payers related to inadequate reimbursement rates, payment delays, and increases in claim denials.”
2. CommonSpirit reported operating revenues of $10 billion for the three months ended March 31, compared to $9.3 billion during the same period last year.
3. Operating expenses totaled $10.1 billion in the quarter, up from $9.6 billion.
4. Adjusted admissions increased 4.1% compared to the same quarter last year . Outpatient visits increased 6.3%, and emergency room visits increased 2.1%.
5. The system reported a net income of $114 million in the third quarter, down from a net income of $282 million during the same period last year.
6. “While we are encouraged, we remain focused on implementing strategies to address ongoing challenges with payer reimbursements and inflationary pressures,” CFO Dan Morrissette said in the release.
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