- CommonSpirit Health posted a $397 million net loss in the first quarter of its new fiscal year as the health system reported higher labor costs and fewer patients turning up for care in key service areas.
- Outpatient and emergency room volumes declined compared with the same period last year.
- The system said its payer mix has softened, most notably revenue from commercial members that dipped compared to the first quarter of last year.
The first quarter loss comes amid news that CommonSpirit continues to wrestle with the fallout from October’s ransomware attack. The Chicago-based health system did not provide new details about the cybersecurity incident in Tuesday’s quarterly results.
Although patient volumes dipped in other key areas, CommonSpirit said adjusted admissions ticked up 2% when comparing the same facilities year over year.
Revenues did climb to $9 billion for the quarter ended Sept. 30, staying above the increase in operating expenses, which reached a total of $8.9 billion for the quarter.
The system reported operating income of $23 million, a 32% decline compared to last year’s first quarter.
Tuesday’s results extend CommonSpirit’s losses.
The health system ended its last fiscal year on June 30 with a $1.8 billion net loss and a $1.3 billion operating loss.
Meanwhile, profits for health insurers have continued to climb. All major insurers expect a rosier end to 2022 than previously predicted and raised their full-year earnings targets even as a recession looms.