...CommonSpirit's fiscal 2026 audited results (June 30, 2026) present a mixed picture relative to Fitch Ratings' expectations as of our last review (October 2025). On the positive side, CommonSpirit's operating EBITDA margin continued to improve (to 4.5% from 3.7%), unrestricted liquidity grew to $18.0 billion and management has articulated a credible, multi-phase framework (Project ImpACT) targeting an 8% EBITDA margin by fiscal 2029. Execution to date on technology consolidation -- an electronic health record (EHR) platform reduction to nine systems from 19, with an endpoint of one instance of Epic, and an enterprise resource planning (ERP) platform reduction to one system from 13 -- indicates that management retains the operational discipline needed to execute complex, multi-year transformation initiatives. Additionally, CommonSpirit improved on six of seven system goals (e.g., clinical quality, team member engagement, patient experience). Three material developments since our last review...
