Sutter Health, a 24-hospital system based in Sacramento, Calif., posted a $22 million loss from operations in fiscal year 2013, compared with an operating profit of $549 million in 2012.
According to the Sacramento Business Journal, it was Sutter Health's first operating loss since 1999.
Sutter Health's operating revenue increased less than 1 percent to $9.65 billion, while operating expenses soared 7.3 percent to $9.67 billion. Including investment income, the system's total profit in 2013 was $300 million, compared with $735 million in 2012.
Pat Fry, president and CEO of Sutter Health, said in a news release the system has been working to transition away from fee-for-service and toward value-based payment. In addition, Sutter Health expects it spent almost $2 billion last year on new facilities and technologies.
"Despite an increasingly challenging operating environment, Sutter Health's balance sheet remains strong, and we continued critical investments in 2013 to enhance access to healthcare services and improve clinical quality and efficiency," Mr. Fry said.
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