Sutter Health inverts operating margin in 2014

Sacramento-based Sutter Health reported an operating income of $419 million for fiscal year 2014, according to financial data released last week, the Sacramento Business Journal reported. This is up from a loss of $22 million in 2013, according to the report.

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The heath system’s total profit was up 34 percent in 2014 to $402 million from $300 million in 2013. Sutter reported total revenues of $10.6 billion, up 5.3 percent from the preceding year.

The growth in Medi-Cal, California’s Medicaid program, accounts for 19 percent of the health system’s gross patient revenue in fiscal year 2014, up 3 percentage points from 2013. Sutter spent $535 million to care for patients whose cost was not fully covered by Medi-Cal, according to the report.

However, the company spent 45 percent less on charity care and 15 percent less on community benefits in 2014, for a total of $91 million and $767 million respectively.

 

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