CommonSpirit Health released its financial results for the third quarter of fiscal year 2026, ending March 31, according to a May 15 statement. The report shows that while patient volumes and length of stay improved, the organization continues to face industry-wide challenges such as increased supply costs and delays in payments from payers.
For the quarter, CommonSpirit reported operating revenues of $10.0 billion and operating expenses before special charges of $10.6 billion. This resulted in an operating loss before special charges of $578 million with a margin of -5.8%, compared to an operating loss before special charges of $85 million and a margin of -0.9% during the same period last year when normalized for the California provider fee program. EBITDA before special charges was $71 million (0.7% margin), down from $434 million (4.3% margin) in the prior year.
Volumes on an adjusted admission basis rose by 3.2% over three months and by 4.3% over nine months compared to last year’s periods, while acute average length of stay decreased to 4.70 days for three months and 4.62 days for nine months, both improvements from previous figures.
In May, CommonSpirit received a one-time Federal Emergency Management Agency grant revenue totaling $383 million as reimbursement for COVID-19 pandemic expenditures; this will be recorded in the fourth quarter.
Chief Financial Officer Michael P. Browning said: “Our third-quarter performance reflects a dynamic healthcare landscape, where we’re seeing positive demand for our services alongside persistent financial headwinds.” Browning continued: “Our focus remains firmly on long-term sustainability. Through innovations in care delivery and targeted operational improvements, we are building resilience and ensuring we can continue to achieve our strategic goals.”
The health system highlighted several achievements during this period: it exceeded national averages in Leapfrog’s spring Hospital Safety Grades with A or B grades at most hospitals; surpassed national averages in Centers for Medicare & Medicaid Services Hospital Star Ratings; was named one of America’s Innovative Companies by Fortune Magazine; advanced digital experience initiatives including unified scheduling tools; and continued implementing Project ImpACT—a multi-year initiative aimed at optimizing operations across information technology, business processes, clinical operations, physician enterprise efforts, and revenue optimization.
Chi Memorial Hospital Georgia formed part of the CommonSpirit Health system—which includes featured hospitals as well as care sites such as freestanding outpatient imaging centers—and received recognition from leading organizations for its commitment to quality and patient safety according to the official website.
