Chicago-based CommonSpirit Health recorded a $225 million operating loss (-0.6% operating margin) in fiscal 2025, an improvement from an $875 million loss (-2.4% margin) posted last year, according to the system’s Sept. 25 financial report.
Note: Figures are adjusted to normalize the California Provider Fee Program net income.
Five things to know:
1. CommonSpirit recorded total operating revenue of $40.1 billion for the year ended June 30, up from $37 billion in 2024. Net patient and premium revenue totaled $37.1 billion, up from $34.9 billion. In 2025, the system received $645 million in COVID-19-related reimbursements from the Federal Emergency Management Agency, compared with $41 million in 2024. It also received $240 million in employee retention credits from the Internal Revenue Service in 2025, up from $34 million last year.
2. Total operating expenses were $40.3 billion in 2025, up from $37.8 billion last year. Salaries and benefits totaled $20.1 billion, up from $19.1 billion. Supply costs were $6.3 billion, up from $5.8 billion. Purchased services and other expenses totaled $11.8 billion, up from $10.7 billion.
3. CommonSpirit’s primary challenges remain broad inflationary pressures and reimbursement challenges caused by unfavorable payer behavior, the system said in the report.
4. “We continue to be encouraged by year-over-year improvement in our financial performance,” CommonSpirit CFO Dan Morissette said in a Sept. 24 news release. “However, we remain focused on key strategic priorities including leveraging our size and scale to realize operational efficiencies, continued diversification, and ensuring we are paid for the care we provide.”
5. The 138-hospital system recorded a net income of $1.6 billion in 2025, up from $503 million in 2024.
