Chicago-based CommonSpirit reported operating losses of $365 million and $411 million during the three- and nine-month periods ending March 31, 2024, compared to losses of $619 million and $1 billion during the same periods the year prior.
Normalized for the California provider fee program, operating losses for the three- and nine-month periods were $365 million and $705 million, compared to losses of $470 million and $1.1 billion for the same periods in the year prior, according to financial documents published May 15.
Despite continued operating losses, financial results show improvement on a year-to-date basis versus prior year, driven in large part by increased volumes, efficiency gains and reductions in length-of-stay.
CommonSpirit said earnings improvements continue to be partially offset by the ongoing effect of salary and supply cost inflation, which still exceeds payer reimbursement rate increases.
Revenue for the quarter ending March 31 increased 9.5% year over year to $9.25 billion while expenses grew by 7.8% to $9.62 billion. Labor costs increased 8.3% to $4.87 billion.
CommonSpirit's operating margin for the three- and nine-month periods is -3.9% and -2.6%, respectively, compared to -5.6% and -5.4% during the same periods the previous year.
"We are pleased to see the continued improvement in our financial performance," CFO Dan Morissette said. "Our teams are squarely focused on maximizing our opportunities for growth, while simultaneously minimizing our costs."
On a same-store basis, volumes increased in the quarter, with adjusted admissions rising 4.5% and outpatient visits increasing 2% year over year. Emergency Room visits were up 3.9% over the prior-year quarter.
After accounting for nonoperating items, including investment returns, CommonSpirit reported a net income of $244 million for the three months ending March 31, compared to a net loss of $207 million during the same period in 2023.