CommonSpirit stories $400M loss attributable to labor scarcity, inflation

CommonSpirit well being is the latest nonprofit system hit with ongoing monetary ramifications from inflation and labor shortages.

The Chicago-based mostly well being system on Tuesday reported a web lack of $397 million for its fiscal yr 2023 first quarter, in contrast with a $269 million buy a yr in the past. working income bought here to $9.01 billion inside the quarter, a 5.4% yr-over-yr enhance. working funds rose 5.6% to $eight.ninety nine billion. These outcomes aren’t normalized for income associated to the California supplier price program, a coverage designed to assist hospitals treating Medicaid enrollees and uninsured sufferers.

funds for salaries and advantages rose 5.1% from a yr in the past, and contract labor, further time and premium pay contributed to the quarter’s enhance. nonetheless, the system mentioned it has seen a forty three% discount in contract labor prices since March. current prices dipped by 4.6%, whereas purchased companies funds elevated by thirteen.4%. 

CommonSpirit additionally weathered a $517 million web loss on investments inside the quarter. 

On Sept. 1, Trinity well being in Michigan acquired full possession for $613 million of Iowa-based mostly MercyOne, a well being system collectively owned with CommonSpirit. The system reported a $34 million web loss on that sale in September.

In October, CommonSpirit issued two bonds to raise about $1.5 billion to refinance prior debt, reimburse prior capital expenditures and fund fundamental agency capabilities. Lisa Zuckerman, senior vice chairman of treasury and strategic investments, mentioned then the system likes to enter the bond market every one to three years.


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