2012 Financial Performance
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The Sutter Health network of doctors, hospitals and other health care service providers announced its financial performance for 2012. Sutter Health’s combined 2012 systemwide income from the day-to-day operations of its hospitals, care centers and other services was $549 million, compared to $697 million in 2011. Sutter Health posted a gain of $242 million in investment income and changes in net unrealized gains and losses from investments classified as trading in 2012, compared to a loss of $14 million in 2011. Total income for 2012 was $735 million, compared to $634 million in 2011. The system’s total 2012 operating revenues were $9.6 billion, compared to $9.1 billion in 2011.
Sutter Health’s 2012 operating performance includes $94 million of net supplemental payments associated with California’s temporary program to obtain federal matching dollars to partially offset underpayments in previous years for the care of Medi-Cal patients. Sutter Health hospitals cared for 22 percent of all Medi-Cal patients discharged from hospitals in the counties served by Sutter Health (per 2011 OSHPD reports; 2012 Medi-Cal data not yet available).
Sutter Health continued its significant capital spending in 2012, investing in new facilities and lifesaving technology throughout Northern California. Major earthquake safety-related hospital replacements and renovations, along with new physician clinic construction projects, were under way in 2012 in Santa Rosa, Oakland, Sacramento and Castro Valley (new Eden facility opened in December 2012), for a total anticipated investment of nearly $2 billion. Sutter Health expects to invest in additional hospital projects in San Francisco after securing entitlements.
“2012 was another year of major investment by Sutter Health in new patient care centers, technology and activities that improve clinical quality, access and efficiency,” said Sutter Health President and CEO Pat Fry. “We’re fortunate that strong financial performance continues to provide us with the ability to meet critical health care needs in the communities we serve.”
Sutter Health’s 2012 investments also included continued installation of an electronic health record in Sutter hospitals; starting a new research, development and dissemination program; applying for a Knox-Keene License; and work associated with centralizing Sutter’s business operations in a 300,000-square-foot facility in Roseville. Fry said Sutter Health invested $1.1 billion in capital projects in 2012 and expects to invest $5.6 billion in long-term facility and equipment enhancements over the next five years (2013-2017).
Caring for the Underserved
During 2012, Sutter continued to provide record-high levels of care and services for the poor and underserved and other benefits for the broader community. Sutter Health’s 2012 commitment to community benefit was $795 million ($756 million in 2011). 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.
Sutter Health’s commitment to delivering charity care to patients continued to grow, reaching another all-time high of $153 million in 2012—or an average of nearly $3 million per week, compared to $140 million in 2011.
Sutter Health 2012 Financial Results
|Dollars in millions|
|Change in net unrealized gains/losses from investments classified as trading|
|Less income attributable to noncontrolling interests|
|Income attributable to Sutter Health|
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.
Sutter Health’s 2012 audited financials are available upon request from email@example.com.