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CommonSpirit Records Operating Income of $539M

Analysis  |  By Jack O'Brien  
   May 14, 2021

For the quarter, CommonSpirit reported an EBITDA of 11.7%.

CommonSpirit Health recorded an operating income of $539 million in Q3 2021, however, the system noted the metric was largely supported by continued federal pandemic relief funding and a pre-tax gain on the sale of joint venture shares.

CommonSpirit released its latest financial results Friday afternoon, acknowledging that without those two major sources of funding, the Chicago-based system would have reported an operating loss of $117 million.

In fiscal year 2021, CommonSpirit has received $617 million in provider relief fund revenues.

Related: CommonSpirit Q2 Revenues Rose to $8.2B, Up 7.5%

The financials underscore the lingering headwinds associated with the COVID-19 pandemic, which has battered the bottom lines of provider organizations nationwide for more than a year.

"In many ways this quarter was similar to what we experienced over the last year, with a very challenging period followed by a robust recovery," Dan Morissette, CFO of CommonSpirit, said in a statement. "With vaccination rates rising and many people returning to their pre-pandemic routines, we expect to continue a strong path to recovery, while also recognizing that we will likely see operational impacts from the pandemic for quite some time. This is our new normal, and we are well-positioned to succeed in this environment in the months and years ahead."

Related: Virginia Mason Franciscan Health Co-CEOs Share Merger Success

For the quarter, CommonSpirit reported an EBITDA of 11.7%, but without CARES Act grant revenues and the gain on sale of joint venture shares, the organization had an EBITDA of 4.6%.

Additionally, without the funding, CommonSpirit reported operating revenues of $8.2 billion, as net patient and premium revenues increased by $677 million year-over-year.

Related: CommonSpirit CNO: Org's High Vaccination Rate 'Bellwether for the Entire Healthcare Industry'

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

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