Sacramento, Calif.-based Sutter Health announced it earned an income from day-to-day operations of $685 million in 2010, up from $471 million in 2009, according to a Sutter Health news release.
Total income for 2010 (which includes gains on investment income) was $878 million. Total 2010 operating revenues were $9.1 billion, compared to $8.5 billion in 2009.
Despite this strong performance, Sutter CEO Pat Fry shared concerns about an increasingly challenging environment for hospitals. During 2010, Sutter spent $121 million on charity care, but from $105 million in 2009. It also spent $851 million in capital in 2010, most of which was for upgrades to electronic medical records.
"The needs of our communities continue to grow, and meeting our financial goals will be increasingly difficult in a very challenging environment where the government, employers and other plan sponsors look for ways to reduce the amount of money they pay for healthcare," Mr. Fry said, noting that Medicare will reduce reimbursement to Sutter Health by nearly $2 billion over the next ten years to help cover the federal government's share of the cost associated with health care reform.
Sutter Health announced in February it plans to reduce expenses by $700 million by 2014.
Read the release on Sutter Health.
Read more coverage on Sutter Health:
- Grant Davies Named CEO of Three Sutter Health Hospitals
- Sutter Health to Give Up Management of Marin General Hospital in California
Total income for 2010 (which includes gains on investment income) was $878 million. Total 2010 operating revenues were $9.1 billion, compared to $8.5 billion in 2009.
Despite this strong performance, Sutter CEO Pat Fry shared concerns about an increasingly challenging environment for hospitals. During 2010, Sutter spent $121 million on charity care, but from $105 million in 2009. It also spent $851 million in capital in 2010, most of which was for upgrades to electronic medical records.
"The needs of our communities continue to grow, and meeting our financial goals will be increasingly difficult in a very challenging environment where the government, employers and other plan sponsors look for ways to reduce the amount of money they pay for healthcare," Mr. Fry said, noting that Medicare will reduce reimbursement to Sutter Health by nearly $2 billion over the next ten years to help cover the federal government's share of the cost associated with health care reform.
Sutter Health announced in February it plans to reduce expenses by $700 million by 2014.
Read the release on Sutter Health.
Read more coverage on Sutter Health:
- Grant Davies Named CEO of Three Sutter Health Hospitals
- Sutter Health to Give Up Management of Marin General Hospital in California