Sacramento, Calif.-based Sutter Health saw its financial picture improve in the second quarter of 2020, after posting a $1.1 billion loss in the first quarter, according to recently released financial documents.
Sutter Health recorded a net income of $220 million in the second quarter of 2020. This compares to a net income of $113 million in the same quarter one year prior.
In the three months ended June 30, Sutter Health saw its revenues hit $2.9 billion, down 12.1 percent from the same period last year when the system posted revenues of $3.3 billion. The system's patient service revenue declined in the second quarter to $2.2 billion. This compares to $2.8 billion in patient service revenue in the same period one year prior.
Sutter Health saw its expenses reach $3.3 billion in the second quarter, which is a decrease of about $27 million from the second quarter of 2019.
Overall, the system recorded a $321 million operating loss in the second quarter. This compares to an operating gain of $36 million in the same quarter in 2019.
The system also recorded nonoperating gains, including $12 million in investment income and $514 million in net unrealized gains.
From April 2020 through July 2020, Sutter Health received over $400 million in COVID-19 relief aid and $1 billion in accelerated Medicare payments. The accelerated payments are expected to be repaid in a year, Sutter Health said.
Sutter Health said the COVID-19 pandemic "resulted in one of the worst equity market events in financial history during the first quarter," however, it saw a "substantial rebound" during the second quarter.