CommonSpirit's net income triples to $1.9B in Q2

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CommonSpirit, a 140-hospital system based in Chicago, saw revenues rise in the second quarter of fiscal year 2021 and ended the period with a net gain, which was fueled by strong investment income growth. 

CommonSpirit, formed in 2019 through the merger of San Francisco-based Dignity Health and Englewood, Colo.-based Catholic Health Initiatives, reported revenues of $8.3 billion in the second quarter of fiscal 2021, up from $7.5 billion a year earlier. 

The health system's operating expenses increased year over year. It reported total expenses of $7.9 billion in the second quarter of fiscal 2021, compared to $7.4 billion in the same period last year. 

CommonSpirit ended the second quarter of fiscal 2021 with operating income of $363 million, compared to operating income of $40 million a year earlier. 

The health system said the COVID-19 pandemic continues to affect its financial performance. Excluding grants made available under the Coronavirus, Aid, Relief and Economic Security Act, CommonSpirit said it would have reported operating income of $70 million. 

"The last year has been challenging for our organization, but we are incredibly proud of the way our employees and facility leaders have stepped up to meet the health needs of our patients," CommonSpirit CFO Dan Morissette said in an earnings release. "Now, COVID-19 vaccines and a decline in cases are bringing new hope, and we are similarly seeing improvement with our organization's performance. Clearly there are still challenges for us ahead, but our coordinated and effective response to the pandemic means we are well-positioned to sustain our operations and thrive in the post-pandemic health care landscape."

After factoring in nonoperating income of $1.7 billion, including nearly $1.2 billion in investment income, CommonSpirit ended the second quarter of fiscal 2021 with net income of $1.9 billion. In the same period a year earlier, the system reported nonoperating income of $539 million and net income of $544 million.

CommonSpirit said it is focused on growth opportunities. In January, the health system completed a combination with Seattle-based Virginia Mason to create an 11-hospital system called Virginia Mason Franciscan Health. 

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