The latest earnings report from CommonSpirit Health paints a troubling picture for healthcare providers nationwide. The system’s net patient revenue took a hit for the first time in months, dropping 5% to $8.9 billion in the second quarter of fiscal 2025. This decline is a stark contrast to last year, when CommonSpirit and other major health systems saw revenue growth driven by increased utilization and better payer rates.
What’s driving this shift? CommonSpirit cites payer denials and reimbursement rates that fail to keep pace with inflation. This isn’t just a CommonSpirit issue—it’s an industry-wide crisis that’s been building for years. Insurers continue to leverage aggressive denial tactics, delaying or outright refusing payments for medically necessary services. This forces hospitals and providers into financial uncertainty while insurers reap the benefits.
Recent reports show that claim denials have reached alarming levels, with nearly 15% of medical claims being initially rejected by private payers. In 2022 alone, healthcare providers spent nearly $20 billion addressing denied and delayed claims, with over $10 billion wasted fighting disputes that should never have occurred. UnitedHealth Group, a key player in this space, has resisted shareholder proposals demanding more transparency on their payment practices. Meanwhile, patients like Robby Martin, who sued UnitedHealth over repeated rehabilitation coverage denials for his elderly father, are left navigating a broken system that prioritizes profit over care.
Despite this revenue dip, patient volumes remain strong, with acute admissions increasing by 1.9% and outpatient visits growing by 4.2%. This underscores a critical point: patients need care, but insurers are making it harder for providers to get paid for delivering it.
CommonSpirit is responding with its “5 for 25” strategy, focusing on EHR standardization, organic growth, portfolio diversification, and a digital consumer experience. While these are valuable initiatives, they don’t solve the core issue: payers holding providers hostage with reimbursement games.
The financial pressure on healthcare systems isn’t just an administrative headache, it has real consequences. When hospitals struggle financially, it impacts staffing, service availability, and ultimately, patient care. CommonSpirit’s net income dropped from $1.1 billion last year to $87 million this quarter, largely due to declining investment income. But with payer behavior playing a growing role in revenue instability, how much longer can providers afford to operate under these conditions?
At No Surprise Bill, we see this as a wake-up call. Providers cannot continue to bear the burden of payer denials and insufficient reimbursements. The fight for fair compensation isn’t just about
business, it’s about ensuring patients receive the care they need without disruption. If we don’t push back, the gap between what providers give and what insurers allow will only grow wider.
The bottom line? We need transparency, fair payer practices, and policies that put care over corporate profits. We’ll keep advocating, and we hope you’ll join us in holding insurers accountable.
Stay tuned for more updates as we continue this fight—together.
