CommonSpirit Records $579M in Total Net Income

These were the first financials released since CommonSpirit Health Co-CEO Kevin E. Lofton announced plans to retire at the end of June.

Chicago-based CommonSpirit Health recorded a total net income of $579 million during Q2 2020, according to the company's latest earnings report released Tuesday afternoon.

For the quarter, CommonSpirit saw its excess of revenues over expenses grow by 18% year-over-year.

CommonSpirit produced $40 million operating income during the quarter, an improvement compared to its $87 million operating loss this time last year.

The Catholic health system also saw its EBITDA reach $528 million, an increase of 7.1% compared to Q2 2019, along with revenues of nearly $7.5 billion, an increase of 3.2% year-over-year.

“These results demonstrate that we are gaining traction with the strategy and operating model we’ve put in place,” Daniel Morissette, CFO of CommonSpirit, said in a statement. "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."

These were the first financials released since CommonSpirit Health Co-CEO Kevin E. Lofton announced plans to retire at the end of June.

Lofton has served as CEO of Catholic Health Initiatives (CHI) since 2003 and led the organization through its $29 billion megamerger with Dignity Health last year.

Lloyd H. Dean, who has served as CEO of Dignity, will serve as the sole CEO of CommonSpirit after Lofton's departure in the summer.

At the end of Q2, CommonSpirit operated 137 hospitals and saw its volume grow by 4.1% year-over-year in outpatient services.

The system did see its salaries and benefits increase by 3.8% and 4.3%, respectively, as total operating expenses topped $7.4 million.

The earnings report comes less than one month after CommonSpirit announced a partnership with Lyft, the San Francisco-based ride-sharing company, to use LogistiCare to coordinate patient care through on-demand rides in its California and Arizona markets.

"With Lyft’s proven technology, broad geographic footprint, and passion to help promote health equity among CommonSpirit’s varied populations, we can achieve our shared goal to address the social determinants of health by removing transportation barriers that affect people’s ability to receive care," Christine Brocato, system vice president for strategic innovation at CommonSpirit, said in a statement.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.