Chicago-based CommonSpirit recorded an operating loss of $578 million (-5.8% operating margin) in the third quarter of 2026, compared to an operating loss of $85 million (-0.9% margin) during the same period last year, according to its May 15 financial report.
Here are seven things to know:
1. CommonSpirit reported operating revenue of $10 billion during the three months ended March 31, essentially flat year over year. Net patient and premium revenue was $9.4 billion, up from $9.2 billion.
2. The 137-hospital system reported operating expenses of $10.6 billion in the third quarter of 2026, up from $10.1 billion during the same period last year. Salaries and benefits totaled $5.3 billion, up from $5.1 billion. Supply expenses totaled $1.7 billion, up from $1.6 billion.
3. CommonSpirit’s financial report is adjusted to normalize California Provider Fee Program net income and excludes special charges related to the exit of its ownership stake in Conifer Health Solutions.
4. CommonSpirit’s volumes per adjusted admission increased 3.2% year over year in the third quarter. The acute average length of stay was 4.7 days, down from 4.83 days during the same period last year.
5. In May, CommonSpirit received $383 million in Federal Emergency Management Agency grant revenue that will be recorded in the fourth quarter of 2026.
6. “Our third-quarter performance reflects a dynamic healthcare landscape, where we’re seeing positive demand for our services alongside persistent financial headwinds,” CommonSpirit Senior Executive Vice President and CFO Michael Browning said. “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.”
7. The system recorded a net loss of $762 million in the third quarter of 2026, compared to a net income of $114 million during the same period last year.
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