CommonSpirit Health posted $40 million in operating income in the second quarter of fiscal 2020 (PDF), itsÂ first operating gain since the health system was formed through the merger ofÂ Catholic Health Initiatives and Dignity Health last year.
The Chicago-based health systemâ€”theÂ largest nonprofit health system in the country by revenueâ€”cited a revenue jump to $7.5 billion, up 3.2% from $7.2 billion during the same quarterÂ the prior year. The health system reported its total net income was $579 million, up from a loss of $724 million in the same quarter a year earlier.
In its first consolidated financialÂ report last year after merging,Â the health system reported a net loss of $290 million on revenue of almost $29 billion, down from $1.1 billion in earnings on $29 billion in revenue in fiscal 2019.Â The health system’s operating loss was much higher when taking into accountÂ special charges and merger-related costs.
Across-the-Board Impact of an OB-GYN Hospitalist Program
A Denver facility saw across-the-board improvements in patient satisfaction, maternal quality metrics, decreased subsidy and increased service volume, thanks to the rollout of the first OB-GYN hospitalist program in the state.
CommonSpirit operates 137 hospitals and hundreds of additional facilities in 21 states.
The health system has calledÂ diversifying and increasing revenue from non-acute care settings “a strategic priority.” They reportedÂ aÂ 4.1% increase in outpatient services. CommonSpiritâ€™s home care and hospice care business grew 10.5% in the first half of the fiscal year compared to the previous year.Â Barely 30% of the companyâ€™s revenue came from value-based agreements with payers, employers and government programs, officials said.
â€śThese results demonstrate that we are gaining traction with the strategy and operating model weâ€™ve put in place,â€ť said Daniel Morissette, CommonSpiritâ€™s senior executive vice president and chief financial officer, in a statement.
“A year into our new organization we have a clear vision and well-defined strategy, we are growing in key markets and service lines, and we are keeping our expenses in check,” he said.Â “We still have significant work to do to realize our ambitious growth and savings goals, but there is no question that these results represent a step in the right direction.â€ť