Sutter Health’s (Sutter) audited financial statements for 2023 show the integrated health system is in a healthy financial position, due in large part to an increase in the number of patients cared for by Sutter care teams across California. The organization ended 2023 with $320 million in operating income and an operating margin of 2%, which helps put the 100-year-old, not-for-profit system in a good position to deliver on its comprehensive plans over the next decade to continue to invest in expanding care for more patients, as well as upgrading facilities, technology and equipment.
2023 Financial Performance
Financials in Greater Context
In 2023 Sutter announced a $1 billion ambulatory care expansion to open more than two dozen new ambulatory care centers to bring services closer to patients over the next three years. Examples of capital projects completed in 2023 include the opening of the Sutter Health Ambulatory Care Center and Surgery Center in San Jose and Sutter Davis Hospital’s expansion. Other work to expand care capacity initiated in 2023 included recruiting more than 700 new physicians and clinicians, a record number for the system. Additional plans are underway to further expand graduate medical education programs, with the goal of training 1000 resident and fellow physicians by 2030. These programs are in addition to other ongoing clinical training programs and academic partnerships designed to widen the clinical talent pipeline as a reliable source to help the system deliver innovative, equitable and culturally competent care.
Sutter’s positive operating performance in 2023 was also coupled with positive yields of $679 million on its investment portfolio, which provide Sutter with the ability to replace equipment, invest in new technologies and expand access to care in communities across Northern and Central California.
Dollars in millions
2023 | 2022 | |
---|---|---|
Total revenues | $16,130 | $14,773 |
Total expenses | 15,810 | 14,495 |
Income from operations | 320 | 278 |
Nonoperating income (loss): | ||
Investment income (loss), net | 679 | (448) |
Gain (loss) on consolidation and deconsolidation | 48 | (208) |
Other components of net periodic postretirement costs | 123 | 209 |
Total nonoperating income (loss), net | 850 | (447) |
Net income (loss) | 1,170 | (169) |
Income attributable to noncontrolling interests | (92) | (80) |
Income (loss) attributable to controlling interests | 1,078 | (249) |
Read more about Sutter’s 2023 financial performance on Vitals.