CommonSpirit Health eliminated about 2,000 full-time positions, roughly 1% of its workforce, in its fiscal fourth quarter as part of a focus to operate more efficiently.
Positions affected by the reduction included ancillary, support and overhead roles, the Chicago-based health system said in fiscal year 2023 financial documents published Thursday. It did not say how many were unfilled positions or what locations were affected, but noted the cuts were partially offset by increased clinical hiring to handle higher patient volumes. A spokesperson declined to provide details.
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The layoffs at CommonSpirit are part of a strategy that also includes expanding internal referrals, increasing outpatient capacity, regulating supply purchases, reducing office space and standardizing physician fee contracts. The system has attributed its financial challenges to labor shortages, inflation, declining patient acuity and a $160 million hit from a ransomware attack last October.
CommonSpirit reported a net loss of $259 million in its fiscal year ended June 30, an improvement from the prior year's $1.85 billion loss. Revenue rose 1.8% to $34.51 billion, and expenses increased 2% to $35.9 billion. Operating losses totaled $1.4 billion, compared with $1.3 billion a year ago.
It reduced contract labor spending by 16% during its fourth quarter and by 43% since those costs peaked in February 2022.
The system continues to adjust its 24-state footprint. It acquired five Utah hospitals and more than 40 affiliated clinics in May from Dallas-based Steward Health Care in a $705 million deal. In August, CommonSpirit and Alamonte Springs, Florida-based AdventHealth ended their Centura Health joint venture. CommonSpirit agreed to oversee Centura's hospitals and clinics in Colorado, Kansas and Utah.
