Sutter Health More than Doubles Net Income in 2000

With income from investments and the sale of real estate, Sutter Health more than doubled its net income to $111 million last year, compared to $51 million in 1999, the Sacramento Bee reports. On revenues of $3.5 billion, the health system reported net operating income of $35 million in 2000, up from $4 million on revenues of $2.9 billion in 1999. However, Sutter posted a 1% operating margin in 2000, falling short of its goal of between 3% and 4%. Despite its small margin, Sutter is one of California's "more financially sound" hospital systems, according to major credit rating firms. Sarah Krevans, COO of Sutter's central division, credited higher reimbursements from some health plans and staff restructuring for the financial turnaround. Last year, only three of Sutter's hospitals 27 hospitals reported losses; in 1996, 60% of the health system's hospitals were in the red. Although Sutter has "led the charge" in seeking higher payments from health plans, those payments still need to be higher for health systems in the state to "reach and sustain target margins," according to Jan Emerson of the California Healthcare Association (Rapaport, Sacramento Bee, 4/27).