Rosier year at Sutter Health

Rosier year at Sutter Health
Capital-area facilities called big players in revenue turnaround.
By Jon Ortiz -- Bee Staff Writer
Published 2:15 am PDT Friday, April 14, 2006

Note; Sutter Health operates medical facilities within Solano County.

Sutter Health reported today that its overall net income rose 3 percent last year on the strength of increased operating revenue at its hospitals and clinics, especially those in the Sacramento region.

The announcement marked a turnaround for the 26-hospital medical services system, which saw operating income fall in 2004 by 17 percent to $320 million.

By comparison, Sutter's 2005 income from its hospitals, clinics and other daily businesses grew to $334 million. With investments, 2005 net income rose to $442 million on total revenues of $6.7 billion.

Sutter's reported revenues for the previous year were $6.3 billion.

"We focused on service, affordability and quality during 2005," Sarah Krevans, regional executive officer for Sutter, said in a prepared statement.

Sutter's fast-growing operations in the Sacramento region accounted for $120 million in net income last last year, up 55 percent over 2004.

Sutter opened new clinics in Natomas and Folsom, expanded offices in Elk Grove and Davis, remodeled and beefed up several departments at its Auburn hospital and started construction on a 90-bed tower at the Sutter Roseville Medical Center.

Meanwhile, Sacramento-area hospitals, clinics and other services "worked hard to rein in costs," said Bob Reed, Sutter's chief financial officer.

To do that in the Sacramento region, system leaders last year shut down a skilled nursing unit at Sutter General and closed medical programs and an outpatient pharmacy at Sutter Davis. Some vacant positions in the Sacramento region went unfilled, officials said.

About the writer:

Bee's Jon Ortiz can be reached at (916) 321-1043 or jortiz@sacbee.com.