Sutter Health posts $51M operating loss in Q2

Sutter Health reported a year-over-year decline in revenues in the second quarter of this year, and the Sacramento, Calif.-based health system ended the period with a loss, according to unaudited financial documents

Seven things to know: 

1. Sutter's operating revenues totaled $3.49 billion in the second quarter of this year, down from $3.52 billion in the same period of 2021. 

2. The health system saw operating expenses increase to $3.55 billion in the second quarter of this year, up from $3.4 billion in the same period a year earlier.

3. Sutter ended the second quarter of 2022 with an operating loss of $51 million. In the second quarter of 2021, the health system posted operating income of $106 million. 

4. Sutter's investment income totaled $56 million in the second quarter of 2022, compared to $251 million in the same period last year. 

5. The health system reported a $457 million net loss in the second quarter of this year, compared to net income of $636 million in the same period a year earlier. 

6. Looking at the first six months of this year, Sutter reported a $641 million net loss on revenues of $7.05 billion. In the first half of 2021, Sutter reported net income of $825 million on revenues of $6.94 billion. 

7. "Sutter's finances have stabilized, but our year-to-date numbers show we still have more affordability work ahead as we strive to best position Sutter Health to serve our patients and communities into the future," a Sutter Health spokesperson said in a statement to Becker's Hospital Review. "The organization continues to face financial headwinds like inflation and increased staffing costs, as evidenced by our near breakeven operating margin. Even still, we are encouraged that independent ratings agencies have recently acknowledged our efforts to date. In the second quarter, Moody's, S&P and Fitch all affirmed the system's existing 'A' category bond ratings."

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Learning Opportunities

Featured Whitepapers

Featured Webinars