Catholic Healthcare West Posts Profit for Fiscal Year 2003
Officials for San Francisco-based Catholic Healthcare West on Monday announced that the not-for-profit hospital chain posted net income of $51 million for the fiscal year ending June 30, its first profit in six years, the Sacramento Bee reports. CHW -- which has a total of 41 hospitals in California, Arizona and Nevada -- had operating income of $64 million for FY 2003, compared with a $47.4 million loss for FY 2002 and operating losses totaling $980.4 million over the previous five years. "Coming off of significant losses, our financial performance this year is really the culmination of a three-year turnaround effort," Lloyd Dean, president and CEO of CHW, said, adding, "Many of our markets, including Sacramento, really stepped up to the plate with strong operating performances, improved productivity and improved market share." For FY 2003, Mercy General Hospital in Sacramento and Mercy San Juan Medical Center in Carmichael accounted for about 13% of CHW's patient revenue in California, according to state records. In addition, the two hospitals and the four other CHW medical facilities in the Sacramento area accounted for 19% of patient revenue for CHW's California hospitals. Brisk population growth in the Sacramento region increased demand for hospital care and helped improve revenues despite a national decline in hospital admissions, William Hunt, the vice president of operations for CHW, said. He added, "With the population growth showing no signs of letting up, our biggest concern is that demand for care could outstrip our capacity" (Rapaport, Sacramento Bee, 10/14).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.