Chicago-based CommonSpirit, one of the largest nonprofit health systems in the country, reported an operating loss of $1.39 billion for the fiscal year ending June 30 on revenue of $34.51 billion with an adjusted operating margin of -3.9 percent.
Those figures compare with an operating loss of $1.29 billion on revenue of $33.91 billion for the same period ending June 30, 2022.
A boost from investment performance helped mitigate the net overall loss, which totaled $259 million compared to a $1.85 billion loss for fiscal 2022.
Salaries and benefits increased over the prior year by 0.7 percent, or $122 million, to $18.3 billion.
CommonSpirit's fourth-quarter efforts focused on growth. It managed to reduce labor costs, including contract labor, improve revenue yield, optimize length of stay and continued value capture efforts, resulting in strong financial performance for the quarter, with an EBITDA of $432 million and an EBITDA margin of 4.7 percent.
"Like the rest of the healthcare industry, CommonSpirit continues to be affected by inflation, the continued labor shortage and challenging dynamics with payers," CommonSpirit CFO Dan Morissette said in a statement. "Given those headwinds, we continue to focus on initiatives and opportunities that allow us to pursue growth, reduce costs and increase efficiency, while at the same time investing appropriately in developing the workforce of the future."