Sutter operating income falls 31% as EMR costs drive up expenses

Sacramento, Calif.-based Sutter Health saw operating income plummet for the year ended Dec. 31, as expenses grew.

Sutter Health recorded revenue of $11 billion last year, up from revenue of $10.2 billion in 2014. The financial boost was partially attributable to year-over-year increases in outpatient and emergency department visits.

The system's financial gains were offset by a 10.3 percent increase in expenses. Sutter Health's expenses climbed to $10.7 billion for the year ended Dec. 31, up from $9.7 billion the year prior.

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.

Sutter Health reported operating income of $287 million last year, down 31.5 percent from operating income of $419 million the year prior.

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