SACRAMENTO: UC Davis the Only Area Hospital to Break a Profit
Despite a 23% drop in net income, the UC Davis Health System was the only Sacramento-area hospital system to make a profit last year. Others, including giants Kaiser Permanente, Sutter Health and Mercy Healthcare, all lost money. UC Davis reported a net income of $38 million, but this year, its net income fell to $29 million. The system was also hit by a $2 million drop in Medicare reimbursement. On the sunny side, hospital admissions were up 4.2% and net patient revenue rose 4.7% since last year. Chief Operating Officer Bob Chason said, "We hope we can continue to stay like that. While we are happy with the bottom line, we share the same kinds of concerns many other healthcare systems have, looking into the future. The Sacramento Business Journal reports that UC Davis has cut its budget by almost $60 million across the last four years and is expected to continue the cuts. The UC Davis Primary Health Care Network is pulling out of Chico by the end of the year, laying off 18 doctors. At the same time, eight doctors will be added to six sites closer to the UCD Medical Center, which "benefits from high fees, a busy trauma center and good sources of referrals to its emergency room and other services." But UC Davis expects to incur more expenses along the way, as well, including a $100 million upgrade to the Medical Center to meet state earthquake standards (10/4).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.