Sutter Health Reports Jump in Earnings, Investment Income
Sutter Health on Friday announced that its 2006 net income increased by 33% from 2005, the San Francisco Business Times reports (Rauber, San Francisco Business Times, 4/13).
The not-for-profit hospital system's net income grew from $442 million in 2005 to $587 million in 2006 (Ortiz, Sacramento Bee, 4/14). Investment income over the same period increased by 47% to $159 million.
Revenue increased to $7.3 billion, a 10.6% increase from 2005 (Colliver, San Francisco Chronicle, 4/14).
Labor unions such as the Service Employees International Union and the California Nurses Association have criticized the hospital system's earnings and practices as a conflict with its not-for-profit status (San Francisco Business Times, 4/13).
However, Sutter officials said the earnings are needed for investments to finance projects such as installing new medical technology and meeting mandatory state seismic safety regulations.
The hospital system estimates its capital expenses from 2001 to 2013 will exceed $11 billion, while construction costs over the past three years have increased 60% (San Francisco Chronicle, 4/14). In addition, Sutter says the costs of deploying its electronic health records system likely will reach $450 million, up from its initial estimate of $150 million (San Francisco Business Times, 4/13).