Chicago-based CommonSpirit reported a $581 million operating loss (-1.5% margin) in the fiscal year ending June 30, improving on the $1.3 billion loss (-3.6% margin) the previous fiscal year.
CommonSpirit attributed the improvement in FY 2024 performance primarily to strong volume with a reduction in labor costs and higher productivity.
"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. "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."
CommonSpirit recently underwent a "comprehensive portfolio review," consolidating eight operating divisions into five regions, completing multiple hospital transactions and implementing various changes with an intentional focus on each geographic market.
The system has also adjusted its portfolio through growth and ambulatory services, invested and grown in its strongest markets — including Arizona, Washington Colorado and Utah — and divested of other geographies that it believes are better served as part of other systems, according to CEO Wright Lassiter III.
Six things to know:
1. CommonSpirit's new operating structure is broken down into five regions: California, Central, South, Mountain and Northwest. The 137-hospital system has more than 2,300 care sites and 150,000 employees, including 25,000 physicians, according to its financial report published Sept. 26.
2. In August, CommonSpirit sold two Dignity Health hospitals in San Francisco to UCSF Health. The sale of Saint Francis Memorial Hospital and St. Mary's Medical Center saw a total of 1,800 employees and providers move to the UCSF Health team. The hospitals shed their religious affiliation and are now known as UCSF Health Saint Francis and UCSF Health St. Mary's under the acquisition.
3. The health system plans to sell Devils Lake Hospital in Devils Lake, N.D., to Altru Health System. The 25-bed critical access hospital dates back to 1902 and has been recognized as one of the most financially stable rural hospitals in the nation.
4. In May 2023, CommonSpirit acquired five Utah hospitals, more than 35 medical group clinics and a clinically integrated network of providers from Dallas-based Steward Health Care for about $705 million. The hospitals include:
- Holy Cross Hospital-Davis (formerly known as Davis Hospital and Medical Center) in Layton
- Holy Cross Hospital-Jordan Valley (formerly known as Jordan Valley Medical Center) in West Jordan
- Holy Cross Hospital-Jordan Valley West (formerly known as Jordan Valley Medical Center-West Valley Campus) in West Valley City
- Holy Cross Hospital-Mountain Point (formerly known as Mountain Point Medical Center) in Lehi
- Holy Cross Hospital-Salt Lake (formerly known as Salt Lake Regional Medical Center) in Salt Lake City
5. Centennial, Colo.-based Centura Health in August 2023 folded into CommonSpirit, which manages 20 hospitals and more than 240 care sites in Colorado, Kansas and Utah that were previously managed by Centura. The Centura Health brand transitioned to CommonSpirit and retired.
6. In September 2022, CommonSpirit sold MercyOne Health System in Des Moines, Iowa, to Livonia, Mich.-based Trinity Health for $613 million. MercyOne had previously been under a joint operating agreement between CommonSpirit and Trinity.