CommonSpirit Health grows operating revenue 8.5% to $42.4B in FY2026
The 156-hospital nonprofit chopped its operating losses down by $257 million, notwithstanding the multibillion-dollar impact of its revenue cycle management breakup with Tenet Health.
CommonSpirit Health, a 156-hospital nonprofit healthcare system, reported an 8.5% increase in operating revenue to $42.4 billion during the fiscal year 2026. Despite a $257 million reduction in operating losses from the previous year, the company faced challenges stemming from rising costs and a complex payer environment. The 12-month operating loss, before special charges, decreased from $687 million to $430 million, marking an improvement in the operating margin.
EBITDA, a key financial metric, expanded by $479 million to surpass $1.9 billion. However, increased spending on supplies, purchased services, and labor contributed to the pressure on the company's financial performance. CommonSpirit's CFO, Michael P. Browning, highlighted the company's commitment to navigating external pressures through cost management and clinical innovation.
The system's growth was driven by increased adjusted admissions (3.9% year-over-year) and a minor decline in length of stay (-1.9%). However, a 12.6% rise in purchased services, including a $2.8 billion special charge from the termination of services with Tenet Healthcare's Conifer Health Solutions, impacted the financials. The company also plans to sell its stake in Mercy Care and complete the sale of a four-hospital system in eastern Ohio to UPMC, along with transferring three North Dakota hospitals to Altru Health System.
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