Chicago-based CommonSpirit recorded an operating income of $2 million (0% operating margin) in the second quarter of fiscal 2026, down from an operating income of $135 million (1.3% margin) during the same period last year, according to its Feb. 13 financial report.
Note: Figures are adjusted to normalize the California Provider Fee Program net income.
Five things to know:
1. CommonSpirit reported total revenue of $10.5 billion during the three months ended Dec. 31, up from $10.1 billion during the same period last year. Net patient revenue was $9.9 billion, up from $9.3 billion.
2. Total operating expenses were $10.5 billion in the quarter, up from $10 billion during the same period last year. Salaries and benefits totaled $5.3 billion, up from $5.1 billion. Supply costs were $1.7 billion, up from $1.6 billion. Purchased services and other expenses were $3 billion, up from $2.8 billion.
3. The system recorded a net income of $456 million in the second quarter of 2026, up from $100 million last year.
4. CommonSpirit is exiting its Conifer Health Solutions joint venture with Tenet Healthcare and plans to insource revenue cycle operations “to drive greater operational integration, efficiency and patient experience.” The deal includes a $1.9 billion payment from CommonSpirit to Tenet over three years and a $540 million redemption of CommonSpirit’s 23.8% stake, with Conifer continuing services through 2026. The system is developing a comprehensive transition plan to minimize disruption and support continuity of revenue cycle operations.
5. Without adjusting for the California Provider Fee Program, CommonSpirit recorded an operating loss of $78 million (-0.8% margin).
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