CommonSpirit Health, one of the largest nonprofit health systems, is looking to expand beyond its 140-hospital network.
“We will have a greater emphasis on non-acute assets, on ambulatory care and continuum of care,” CommonSpirit CEO Wright Lassiter told an audience Monday at the 42nd annual J.P. Morgan Healthcare Conference in San Francisco. “We will continue to expand outside of the acute environment and continue to think about revenue diversification and what is best way for CommonSpirit to diversify around our traditional set of business.”
Find live JPM updates and more coverage coming out of the conference here.
The Chicago-based system will predominantly look to grow its outpatient network, said Dan Morissette, CommonSpirit chief financial officer. It will emphasize its core markets, including Colorado, Arizona, Utah and Washington, he said.
“We do recognize not all markets are same,” Morissette said. “In some cases, we can have a more narrow approach to the market, and in other cases we need a more broad approach to the market depending on the facts and circumstances there.”
In May, it acquired five Utah hospitals, along with 35 clinics, imaging and urgent care centers from Dallas-based Steward Health Care.
Morissette said the health system has completed its $2 billion cost-cutting initiative, which was set in 2019 following the Dignity Health and Catholic Health Initiatives merger that formed CommonSpirit. During its fiscal fourth quarter, it eliminated about 2,000 full-time positions, roughly 1% of its workforce.
It is in the process of selling two San Francisco-based hospitals to UCSF Health, Morissette said.
