CommonSpirit Narrows Operating Loss, Books $2.3B Conifer Exit Charge
CommonSpirit's fiscal 2026 financial report shows an operating loss of $430 million (-1.0% margin) excluding special charges, improved from a $687 million loss the prior year. Including $2.8 billion in special charges, largely a $2.3 billion hit tied to exiting its Conifer Health Solutions revenue cycle venture, plus a tradename impairment and restructuring costs, the system's total operating loss was $3.2 billion. Revenue grew 8.5% to $42.4 billion, helped by $991 million in California Provider Fee Program net income, up sharply from $305 million the year before. The 136-hospital system posted a net loss of $662 million for the year, compared to $1.1 billion in net income in fiscal 2025.
The results show how heavily a major nonprofit system's bottom line now depends on state Medicaid supplemental payment programs like California's provider fee, alongside one-time federal pandemic-era revenue that is fading.
Finance · Managed Care
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