Chicago-based CommonSpirit recorded an operating loss of $430 million (-1.0% operating margin) in fiscal 2026 — excluding special charges — compared to an operating loss of $687 million (-1.8% margin) the year prior, according to its Sept. 30 financial report.
Seven things to know:
1. Including $2.8 billion in special charges, CommonSpirit posted an operating loss of $3.2 billion (-7.5% margin). Of those charges, $2.3 billion is tied to the system’s exit from Conifer Health Solutions. CommonSpirit divested its ownership stake in the revenue cycle company and is terminating its services agreement effective Dec. 31, with plans to bring revenue cycle operations in-house by January 2027. Other special charges include a $245 million tradename impairment tied to the system’s brand unification efforts and $108 million in restructuring-related consulting and severance costs.
2. CommonSpirit reported operating revenue of $42.4 billion for the 12 months ended June 30, up 8.5% from $39.1 billion the year prior. Net patient and premium revenue was $39.5 billion, up 9.4% from $36.1 billion.
3. The 136-hospital system reported operating expenses of $42.9 billion in fiscal 2026, up 7.7% from $39.8 billion the year prior. Salaries and benefits totaled $21.1 billion, up 5.2% from $20.1 billion. Supply expenses totaled $6.7 billion, up 5.6% from $6.3 billion. Purchased services and other expenses totaled $12.7 billion, up 12.6% from $11.3 billion.
4. CommonSpirit recorded $991 million in California Provider Fee Program net income in fiscal 2026, compared to $305 million the year prior. The current-year total reflects 18 months of the program, including 12 months of the 2025 program and the first six months of the 2026 program.
5. The system’s fiscal 2026 results also included $402 million in Federal Emergency Management Agency grant revenue and $133 million in net employee retention credits, down from $645 million and $240 million, respectively, the year prior.
6. CommonSpirit’s volumes on an adjusted admission basis increased 3.9% year over year. The acute average length of stay was 4.6 days, down from 4.7 the year prior.
7. The system recorded investment income of $2.4 billion, up from $1.7 billion the year prior, and a net loss of $662 million in fiscal 2026, compared to net income of $1.1 billion in fiscal 2025.
