CommonSpirit Health Reports $1.3B FY23 Net Loss

**CommonSpirit Health Reports Significant FY23 Losses Amidst Industry-Wide Financial Headwinds**

**Chicago, IL – December 13, 2023** – CommonSpirit Health, one of the nation’s largest non-profit health systems, headquartered in Chicago, announced substantial operating and net losses for its fiscal year 2023, which ended June 30, 2023. The organization, which operates across 24 states with over 1,000 care sites and 140 hospitals, cited persistent high labor costs, a tight national job market, and investment market volatility as primary drivers for the challenging financial year.

The system reported an operating loss of $1.4 billion on operating revenues of $34.6 billion, against $36.0 billion in operating expenses. This led to a total net loss of $1.3 billion for the fiscal year. These figures underscore the immense financial pressures facing the healthcare sector nationwide, particularly for large hospital systems emerging from the COVID-19 pandemic.

CFO Daniel Morissette detailed the significant impact of staffing challenges, including the reliance on more expensive contract labor and increased wage demands for permanent staff, alongside general inflationary pressures on supplies and services. Morissette also pointed to the downturn in financial markets during much of the fiscal year, which negatively affected the system’s investment portfolio.

CommonSpirit Health’s financial performance mirrors a broader trend among non-profit health systems across the U.S., many of which have reported significant losses over the past 18-24 months. These challenges are often attributed to the “Great Resignation” in healthcare, leading to acute shortages of nurses and other clinical staff, as well as rising pharmaceutical and supply costs. For instance, many large systems like Providence and Ascension have also publicly acknowledged similar financial struggles.

Despite the losses, CommonSpirit reported $12.3 billion in cash and investments as of June 30, 2023. Leadership emphasized that this strong liquidity position provides a crucial foundation for future strategic initiatives and the ongoing delivery of care.

Wright L. Lassiter III, CEO of CommonSpirit Health, reiterated the system’s unwavering commitment to its mission of providing compassionate, quality care, especially for underserved communities. “While the past fiscal year presented significant financial hurdles, our dedication to our mission remains paramount,” Lassiter stated. “We are actively implementing a clear strategy, anchored by our mission, to navigate these challenges and build for a more sustainable future.”

The strategic pillars highlighted by Lassiter include initiatives focused on:
* **Well-being & Belonging:** Investing in staff retention, development, and creating a supportive work environment to address labor shortages and burnout.
* **Value Creation:** Streamlining operations, improving efficiency, and managing costs more effectively across its vast network.
* **Digital & Data Advancements:** Leveraging technology, including telehealth and data analytics, to enhance patient care, improve access, and optimize operational processes.
* **Service & Access Improvements:** Expanding care options, enhancing the patient experience, and ensuring equitable access to care in the communities CommonSpirit serves.

As a non-profit, Catholic health system, CommonSpirit Health’s operations extend across urban and rural areas, impacting millions of patients annually. The system’s financial recovery and strategic repositioning will be critical not only for its own stability but also for the communities it serves. The organization aims to leverage its size and mission-driven approach to adapt to the evolving healthcare landscape and achieve long-term financial health.

For more information on CommonSpirit Health’s financial results, visit their official newsroom: CommonSpirit Health FY23 Financial Results Press Release. To learn more about the organization’s mission and scope, please visit: CommonSpirit Health Official Website.