Sutter Health Announces 2015 Financial Performance
Posted on Mar 9, 2016 in Uncategorized
The Sutter Health network of doctors, hospitals and other healthcare service providers announced its financial performance for 2015. Total income for 2015 was $81 million (or 1 percent of revenue), compared to $402 million in 2014. The system’s total 2015 operating revenues were $11 billion compared to $10.1 billion in 2014. Sutter Health posted ($142) million in investment income and changes in net unrealized gains and losses from investments classified as trading in 2015, compared to $39 million the prior year. Sutter Health’s combined 2015 income from the day-to-day operations of its hospitals, care centers and other services was $287 million, compared to $419 million in 2014.
Community-Based Investments to Improve Access to Healthcare
Sutter Health invested $898 million in new facilities and lifesaving technology throughout Northern California in 2015. Major earthquake safety-related hospital replacements and renovations, along with new physician clinic construction projects, were underway in 2015 in multiple communities, including San Francisco, Sacramento, Alameda, Stanislaus, San Joaquin, Placer, San Mateo, Sonoma, Del Norte, Amador and Santa Clara counties. Sutter Health also continued the implementation of its nearly complete, network-wide electronic health record (EHR), which benefits 3 million patients. More than 1 million patients have anytime, anywhere, secure online access to their physicians and medical records through Sutter EHR.
“Strong and stable financial performance has allowed Sutter Health to invest more than $9 billion over the last decade to build and improve healthcare facilities and bring advanced patient care technology to those we serve,” said Sutter Health President and CEO Sarah Krevans. “In 2015 we experienced growth in the numbers of patients served and expanded access to healthcare in our communities.
“We are proud that Sutter Health hospitals cared for more Medi-Cal patients in our Northern California service area than any other system,” Krevans added. Sutter Health cared for 20 percent of all Medi-Cal patients discharged from hospitals in the Northern California counties served by its network in 2014, according to state data—more than any other healthcare provider organization. (2015 Office of Statewide Health Planning and Development Medi-Cal data are not yet available.)
Care for the Underserved
With the implementation of the Affordable Care Act, greater numbers of previously uninsured people now have healthcare coverage. A growing number of newly insured patients are covered by Medi-Cal, whose reimbursement doesn’t cover the full costs of providing care. In 2015, Sutter Health invested $712 million more than the state paid to care for Medi-Cal patients—up from $535 million during 2014. Medi-Cal accounted for 20 percent of Sutter Health’s gross patient service revenues in 2015, compared to 19 percent in 2014.
Sutter Health’s total investment in community benefit in 2015 grew to $957 million, compared to $767 million in 2014. 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.
As the number of insured people grows, hospitals across the U.S. continue to experience a decline in the provision of charity care. In 2015, Sutter Health’s investment in charity care was $52 million, compared to $91 million in 2014.
|Operating Income (Loss)||287||419|
|Change in net unrealized gains/losses from investments classified as trading||(220)||(241)|
|Less income attributable to non-controlling interests||(64)||(56)|
|Income attributable to Sutter Health||81||402|
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