Sutter Health sees net income fall 80% in 2015

Sacramento, Calif.-based Sutter Health reported net income of $81 million in 2015, down nearly 80 percent from $402 million a year earlier, according to the San Francisco Business Times.

Sutter said operating revenue increased 8.9 percent year over year to $11 billion in 2015. After accounting for a 9.9 percent increase in expenses, the health system ended last year with operating income of $287 million, down from $419 million in 2014.

Sutter Health CFO Jeff Sprague told the San Francisco Business Times that salary and benefit increases and one-time costs of implementing an EMR system in some of its facilities contributed to the jump in expenses last year. The health system pumped $9 billion into two new buildings and technology over the last decade, including $898 million last year, according to the report.

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