CommonSpirit Shares Fiscal Year 2019 Results

On Oct. 4, CommonSpirit Health released the results for our fiscal year ending June 30, 2019. This is another key milestone in the creation of our new ministry.

The results show that our geographic reach and diversity of services have CommonSpirit well positioned for future growth. The core of our business remains strong and we are scaling successful service lines and care models like our Health at Home business line and our population health value-based care agreements. We continue to deliver on our mission of care and service for all people, especially those who are most in need.

At the same time, while we expected some challenging financial results during this early part of our alignment, we know we’re not where we need to be if we’re to build a sustainable ministry for the future. In the last fiscal year, the organization saw an operating loss of $222 million before special charges and merger-related costs. This was due to a number of factors that led to a decline in operating performance in some markets. However, on a positive note, we also saw net patient and premium revenue per adjusted admission increase 2.2% in fiscal year 2019 over 2018.

CommonSpirit is in a period of transition as we develop a new strategy and vision for our organization, and it’s more important than ever that we continue to create a strong operating model that will help us transform how we deliver care. We remain focused on implementing a strategy across our footprint that focuses on preventive whole person care, a better patient experience, and providing customized services across the entire continuum of care. And our system-wide performance improvement program has a goal of realizing more than $2 billion through growth, operational improvements and reduced costs.

We expect these efforts will help us get to our goal of 8% EBITDA in the next four years. This is critical to allow us to invest in the facilities, technology, innovation and people needed to achieve our mission.

“CommonSpirit is well positioned to achieve our goals. By sharpening our focus on strong operations and leveraging our diversity of services to offer a superior experience across the continuum of care, we expect to see significant financial improvement in the coming months and years,” said Chief Financial Officer Dan Morissette.

We have already made huge strides toward creating a bold new health organization that will deliver care for many years to come and improve the health of communities across the country. Since February we have centralized key functions like patient safety and information technology, established a new operating model with 11 geographic divisions across 21 states, and begun to scale successful programs and service lines. We have reduced costs and streamlined our operations. And we are having an impact on the lives of those we serve each day by expanding programs to address the social causes of poor health and advocating for health equity.

Thank you for all you are doing to support our ministry. To learn more about our fiscal year 2019 year-end results, review the press release.