Chicago-based CommonSpirit said Oct. 12 its divisional setup will consolidate into just five regions as it seeks to "streamline the organization."
Speaking on an investor call to discuss fiscal 2023 results, CFO Dan Morissette told investors the number of regional divisions would change from the current eight.
"We are also making further changes to streamline the organization, including the consolidation of our operating divisions into five regions from eight, clearly define our market-based focus and strategies and continue to refine our operating model," he said on the call.
CommonSpirit broke down its operating revenues into nine separate divisions for its full-year fiscal 2023 results, which it reported Sept. 21.
Becker's has also recently revealed the nonprofit system is consolidating its two Californian divisions into one mega-division to improve operating efficiencies.
Of the current divisions, the two California units (northern and southern) accounted for more than one-third of the total CommonSpirit revenue reported in fiscal 2023 of $34.5 billion, coming in at $12.4 billion. The Pacific Northwest ($4.5 billion) and Southwest ($4.4 billion) were the next highest, with Iowa the smallest at $119 million.
Further details on such consolidation and streamlining will be revealed in the future, Mr. Morissette added. CommonSpirit declined to comment further.