Excluding CARES Act money, revenues hit $8 billion, operating income was $70 million, a 0.9% margin, and EBITDA was $544, a 6.8% margin.
The coronavirus pandemic continues to strain CommonSpirit's volumes and financials, but the situation is manageable and improving, the Chicago-based health system said Wednesday in a quarterly report.
Adjusted admissions were 9% lower for the second quarter of CommonSpirit's fiscal 2021, when compared with Q2 of FY 2020, owing largely to a shutdown in profitable elective surgeries and procedures that was not offset by an increase in COVID-19 patients.
As of Dec. 31, CommonSpirit's 140 hospitals and other venues in 21 states had cared for more than 144,000 COVID-19 positive patients while expanding staff and capacity during the fall and winter surge.
"The organization is effectively managing expenses," the report said, "but continues to incur costs related to ensuring appropriate staffing and capacity, expanding testing capabilities, and procuring freezers and other equipment as well as developing new digital platforms for distributing COVID-19 vaccine."
CommonSpirit's revenues for Q2 FY 2021 rose $8.28 billion, up 7.5% compared to the FY 2020 Q2, when the prior year is normalized to include three months of California provider fee revenues.
The health system recorded operating income of $363 million, compared to $161 million in the previous year’s quarter. EBITDA was $837 million, a 10.1% margin for CommonSpirit, one of the nation’s largest nonprofit health systems.
However, those numbers relied on federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds.
Excluding CARES Act money, revenues totaled about $8 billion, operating income was $70 million, a 0.9% margin, and EBITDA was $544, a 6.8% margin, the report said.
"The last year has been challenging for our organization, but we are incredibly proud of the way our employees and facility leaders have stepped up to meet the health needs of our patients," CommonSpirit CFO Dan Morissette said.
"Now, COVID-19 vaccines and a decline in cases are bringing new hope, and we are similarly seeing improvement with our organization's performance," he said. "Clearly there are still challenges for us ahead, but our coordinated and effective response to the pandemic means we are well-positioned to sustain our operations and thrive in the post-pandemic healthcare landscape."
“The last year has been challenging for our organization, but we are incredibly proud of the way our employees and facility leaders have stepped up to meet the health needs of our patients.”
Dan Morissette, CFO, CommonSpirit
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
As of Dec. 31, CommonSpirit's 140 hospitals and other venues in 21 states had cared for more than 144,000 COVID-19 positive patients while expanding staff and capacity during the surge.
Adjusted admissions were 9% lower for the second quarter of CommonSpirit's fiscal 2021, when compared with Q2 of FY 2020.
CommonSpirit's revenues for Q2 FY 2021 rose $8.28 billion, up 7.5% compared to the FY 2020 Q2, when the prior year is normalized to include three months of California provider fee revenues.