Revenue cycle improvements are a priority focus for Chicago-based CommonSpirit in 2026, Benjie Loanzon, senior vice president and corporate controller, said during the system’s Dec. 3 investor call.
“Although we have seen improvements in our revenue realization goals, we are not there yet in terms of reimbursement rates,” Mr. Loanzon said. “Our reimbursement rate increases are still lagging behind our inflation rates. We have more to do in the revenue cycle area, and one of our priorities this year is to continue to have revenue yield improvements.”
He said the system remains focused on denial prevention, appropriate clinical documentation, increasing point of service collections, improving the aging of its receivables and receiving appropriate increases through negotiation of its managed care contracts.
CommonSpirit Senior Vice President of Operational Finance John Petersdorf said the system is “spending a great deal of effort on our revenue cycle, standardizing contract language with the payers, elevating denial discussions, although, again, like most of our peers, progress in this area is slow.”
Chicago-based CommonSpirit recorded an operating loss of $165 million (-1.6% operating margin) for the three months ended Sept. 30, compared to an operating loss of $331 million (-3.5% margin) during the same period last year.
Mr. Petersdorf said that in October — the first month of the second quarter of fiscal 2026 — the system produced a positive operating margin without any significant one-time items. He attributed this to strong volume and effective cost management.
“We’re somewhat encouraged by results in October, although one month does not make a trend,” he said.
