Sutter Health Reports Increased Profits in 2005
Sutter Health on Thursday reported net income of $442 million in 2005, compared with $428 million in 2004, a 3% increase, the San Francisco Chronicle reports.
The hospital system's operating income for fiscal year 2005 was $334 million on revenue of $6.7 billion, compared with operating income of $320 million on revenue of $6.3 billion in FY 2004 (Colliver, San Francisco Chronicle, 4/14). Income from investments accounted for the difference in operating income and net income (Ortiz, Sacramento Bee, 4/14).
Both years the company reported a 5% operating margin, considered strong in the hospital industry.
Sutter officials also reported that the cost of providing care to uninsured patients increased to $59 million in 2005 from $42 million in 2004.
Sutter plans to spend $6.6 billion over the next decade to make seismic upgrades to its hospitals and clinics in Northern California (Colliver, San Francisco Chronicle, 4/14).