Sutter Health Announces 2014 Financial Performance
Posted on Mar 27, 2015 in Uncategorized
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The Sutter Health network of doctors, hospitals and other health care service providers announced its financial performance for 2014. Total income for 2014 was $402 million (or 4 percent of revenue), compared to $300 million in 2013. The system’s total 2014 operating revenues were $10.2 billion compared to $9.6 billion in 2013. Sutter Health posted $39 million in investment income and changes in net unrealized gains and losses from investments classified as trading in 2014, compared to $380 million the prior year. Sutter Health’s combined 2014 income from the day-to-day operations of its hospitals, care centers and other services was $419 million, compared to a loss of $22 million in 2013.
Sutter Health cared for 21 percent of all Medi-Cal patients discharged from hospitals in the Northern California counties served by its network in 2013, according to state data—more than any other health care provider organization (2014 Office of Statewide Health Planning and Development Medi-Cal data not yet available).
Sutter Health invested $983 million in new facilities and lifesaving technology throughout Northern California in 2014. Major earthquake safety-related hospital replacements and renovations, along with new physician clinic construction projects, were under way in 2014 in multiple communities, including San Francisco, Santa Rosa, Oakland, Berkeley, San Carlos, Fremont, Los Gatos, Los Altos, Turlock and Sacramento. Sutter Health also continued the implementation of its network-wide electronic health record (EHR), which benefits 3 million patients. Additionally, more than 1 million patients have anytime, anywhere, secure online access to their physicians and medical records through Sutter EHR. Sutter Health has invested more than $11 billion since 2000 to build and improve health care facilities and employ advanced patient care technology, including the EHR.
“We’re pleased that our operating performance improved in 2014 and our balance sheet continues to be strong and sound,” said Sutter Health President and CEO Pat Fry. “Our communities count on us to make the investments needed to ensure our hospitals meet earthquake standards and our physician network keeps up with patient demand and expectations for high-quality and convenient access.”
Care for the Underserved
With the implementation of the Affordable Care Act, greater numbers of previously uninsured people now have health care coverage. Many newly insured patients are covered by Medi-Cal, whose reimbursement doesn’t cover the full costs of providing care. In 2014, Sutter Health provided support to these patients resulting in $535 million more than the state paid to care for Medi-Cal patients. Medi-Cal accounted for 19 percent of Sutter Health’s gross patient service revenues in 2014, compared to 16 percent in 2013.
As the number of insured people grows, hospitals across the U.S. are experiencing a decline in the provision of charity care. In 2014, Sutter Health’s investment in charity care was $91 million, compared to $166 million in 2013.
Sutter Health’s total 2014 community benefit investment was $767 million, compared to $901 million in 2013. This amount includes traditional charity care and unreimbursed costs of providing care to Medi-Cal patients, as well as investments in health education and public benefit programs such as community clinics and prenatal care for low-income patients.
|Operating Income (Loss)||419||(22)|
|Change in net unrealized gains/losses from investments classified as trading||(241)||203|
|Less income attributable to non-controlling interests||(56)||(58)|
|Income attributable to Sutter Health||402||300|
Serving patients and their families in more than 100 Northern California cities and towns, Sutter Health doctors, hospitals and other health care service providers join together and share expertise to advance health care quality, access to care, and patient satisfaction. The Sutter Medical Network includes many of California’s top-performing, highest quality physician organizations, as measured annually by the Integrated Healthcare Organization. Sutter-affiliated hospitals are regional leaders in cardiac care, women’s and children’s services, cancer care, orthopedics and advanced patient safety technology. For more information about the not-for-profit Sutter Health family, please visit www.sutterhealth.org.
ADA compliant versions of the audit available upon request.
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