Sacramento, Calif.-based Sutter Health reported its first annual loss in 23 years due to investment losses caused by turbulent financial markets in the fourth quarter of 2018 and recognizing less revenue from the California Hospital Fee Program, according to The Sacramento Bee.
Five things to know:
1. Sutter's operating revenues totaled $12.7 billion in 2018, up slightly from revenues of $12.4 billion in 2017.
2. After factoring in operating expenses, Sutter ended 2018 with operating income of $201 million. That's compared to 2017, when the health system posted operating income of $326 million.
3. In 2017, Sutter's income from investments and unrealized stock gains totaled $651 million. The health system lost $267 million on investments in 2018.
4. Sutter recorded $432 million from the California Hospital Fee Program in 2017, which included multiple years of revenue from the program. In 2018, the health system recorded $272 million from the program. The Hospital Fee Program charges all hospitals a quality assurance fee that is used to obtain federal matching funds for Medi-Cal with the proceeds redistributed as supplemental payments to California hospitals that treat Medi-Cal patients.
5. Sutter reported a net loss of $198 million in 2018, compared to net income of $893 million in the year prior.
More articles on healthcare finance:
HCA asks shareholders to eliminate supermajority voting rule
Arkansas hospital's financial crisis puts patients at risk, board says
Oklahoma hospital owner forced to turn over operations