Chicago-based CommonSpirit recorded an operating loss of $544 million (-5.3% operating margin) before special charges in the first quarter of fiscal 2027, which ended Sept. 30, according to its Nov. 13 financial report.
Here are eight things to know:
1. Including $65 million in restructuring and vendor transition special charges, CommonSpirit posted an operating loss of $609 million. EBITDA was $77 million, a 0.7% margin.
2. Operating revenue was $10.3 billion, up 5.3% year over year, driven by higher patient volumes and California provider fee revenue. Operating expenses before special charges totaled $10.9 billion, up from $10.2 billion in prior-year reporting.
3. Results included $165 million in net California provider fee income after the system reassessed the timing of how it recognizes state provider fee programs.
4. The system cited declining case acuity, unfavorable payer mix and higher salary and benefit costs as ongoing pressures.
5. Adjusted admissions rose 2.8% year over year. Acute average length of stay dipped to 4.52 days from 4.54, and hospital full-time equivalents per adjusted admission fell 1.4%.
6. CommonSpirit had $18.4 billion in unrestricted cash and investments, or 160 days cash on hand, as of Sept. 30, up from $18 billion, or 159 days, as of June 30.
7. The system finished bringing select revenue cycle services in-house Oct. 31. About 69% of the system now runs on Epic, down to seven EHR platforms from 19, and CommonSpirit plans to move to Workday July 1, 2027. “We are making deliberate, near-term investments to unify our electronic health record, enterprise resource planning and revenue cycle platforms,” CFO Michael Browning said.
8. In October, Trinity Health System in Steubenville, Ohio, transitioned to UPMC, and CommonSpirit divested its interest in Mercy Care Plan in Phoenix. In November, CommonSpirit signed a definitive agreement to transfer three CHI St. Alexius facilities in North Dakota to Altru Health, a deal expected to close in early 2027.
