Revenues and EBITDA rose to $29.58 billion and $1.44 billion, respectively, including $826 million in CARES Act grants that were recognized as revenues across CommonSpirit's 137 hospitals in 21 states.
CommonSpirit Health on Friday reported an overall operating loss of $550 million in fiscal year 2020, which the Chicago-based health system attributed to low volumes and higher costs during the coronavirus pandemic.
"Our mission has driven our response to this pandemic and our path to recovery every step of the way," CommonSpirit CEO Lloyd H. Dean said in a media release.
"This year has been challenging, but also deeply inspiring as we saw the resolve and courage from our healthcare workers and our patients," Dean said. "This experience has only strengthened our organization as we seize the chance to rethink how we can best deliver care and thrive long after this health crisis has passed."
Despite the pandemic, the nonprofit Catholic health system posted a modest increase in operating revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year ended June 30, 2020, when compared to FY 2019.
Revenues and EBITDA rose to $29.58 billion and $1.44 billion, respectively, including $826 million in CARES Act grants that were recognized as revenues across CommonSpirit's 137 hospitals in 21 states.
Dean said the CARES Act aid was critical in stabilizing CommonSpirit's financial losses during the pandemic's peak, and covered 60% of pandemic-related losses.
Adjusted admissions were down 6.2% compared to FY 2019, with volumes falling as much as 40% at many care sites in April when scheduled procedures were cancelled.
Volumes improved significantly in June, July and August, and are now only about 8% below pre-pandemic levels across all care settings, the health system said.
The health system mitigated some of the financially losses with cost-saving measures such as executive pay deductions and freezes on discretionary spending and capital projects. The system still is applying a stringent review process for new projects.
“Our mission has driven our response to this pandemic and our path to recovery every step of the way.”
Lloyd H. Dean, CEO, CommonSpirit Health
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The nonprofit Catholic health system posted a modest increase in operating revenue and EBITDA for the fiscal year ended June 30, 2020, when compared to FY 2019.
CARES Act aid was critical in stabilizing CommonSpirit's financial losses during the pandemic's peak, and covered 60% of pandemic-related losses.
Adjusted admissions were down 6.2% compared to FY 2019, with volumes falling as much as 40% at many care sites in April when scheduled procedures were cancelled.
Volumes improved significantly in June, July and August, and are now only about 8% below pre-pandemic levels across all care settings.