CommonSpirit Ends Q1 With $100M Net Loss

The merged system of Dignity Health and Catholic Health Initiatives also saw total revenues decline by nearly $60 million.

CommonSpirit Health reported a net loss of $100 million for Q1 2019, one year after posting a net gain of $144 million, according to a pro forma quarterly report released Thursday.

The system, which resulted from the megamerger between Dignity Health, based in San Francisco, and Catholic Health Initiatives (CHI), based in Englewood, Colorado, also saw total revenues decline by nearly $60 million to $7.2 billion.

While CommonSpirit managed total other income of $613 million, well above $90 million posted in Q1 2018, excess of revenues over expenses attributable rose $287 million year-over-year.

For the quarter, CommonSpirit's total expenses rose to $7.3 billion, as net assets reached $15.4 billion, up more than $500 million from the start of the year.

The newly merged Catholic nonprofit health system finalized its organizational alignment in February and now accounts for a footprint in 21 states, with more than 700 care sites and 142 hospitals.

Related: Dignity Health, CHI Finalize $29B CommonSpirit Health Megamerger

Compared to similar metrics from last year, total current liabilities rose about $150 million, total current assets increased by about $200 million, and long-term debt declined by nearly $300 million.

As part of operations in California, CommonSpirit also recorded $120 million in state provider fees. 

This comes after the California Attorney General's office required that Dignity expand its charity care offers, including more 100% discounts for patient groups. 

Related: California Requires More Charity Care from CHI-Dignity Megamerger

Additionally, CHI also sold QualChoice Health's commercial insurance operations in the state of Arkansas for $46 million in April.