Chicago-based CommonSpirit posted a $581 million operating loss (-1.5% margin) in fiscal year 2024, up from an operating loss of $1.3 billion (-3.6% margin) posted in 2023, according to its Sept. 26 financial report.
Eight things to know:
1. Total operating revenues were $37.5 billion for the year ended June 30, up from $34.1 billion posted over the same period last year. Net patient revenues were $34 billion, up from $30.4 billion. Premium revenues were $1.5 billion, up from $1.4 billion.
2. Total operating expenses were $38.1 billion in 2024, up from $35.3 billion in 2023. Salaries and benefit expenses totaled $19.1 billion, up from $18 billion last year. Supply expenses totaled $5.8 billion, up from $5.5 billion.
3. CommonSpirit's improved financial performance was attributed to strong volumes with a reduction in labor costs and higher productivity, according to a Sept. 26 news release from the health system.
4. Revenue increases were offset by continued challenges with payers on denials and timely payment, according to the release. The system said it has taken a "firm stance on contract renewals so payers absorb a share of inflation, and processes and terms are improved to ensure providers get paid for the care they deliver."
5. Days of cash on hand was 156 as of June 30, down from 166 on June 30, 2023.
6. The system had a long term debt of $17.6 billion as of June 30.
7. CommonSpirit posted a net income of $681 million in 2024, up from a net loss of $187 million in 2023.
8. "While we are encouraged by the improvement in our finances for fiscal year 2024, we know there is more work to be done to accelerate this trajectory," CFO Dan Morissette said in the release. "We have focused on operational excellence and strategic growth, and we will continue to lean into these areas as we work to expand on these successes."