Sutter Health reports $249M net loss in 2022
Sutter Health’s financial performance deteriorated significantly last year after strong performance in 2021, according to a report released Wednesday by the nonprofit health system.
Sutter Health posted a net loss of $249 million in 2022, a significant decrease from the $1.14 billion profit the Sacramento, California-based company posted in 2021. The company said the pandemic contributed 3.9% to $14.77 billion in revenue on September 19.
Investment losses were $578 million and spending rose 3.3% to $14.5 billion last year. Labor costs for employees decreased by 1.7%, but the cost of purchased services increased by 14.6%. Samuel Merritt University’s transformation into its own non-profit organization in January 2022 resulted in a loss of $208 million.
As CEO Warner Thomas said this month, the health care system is committed to continuing to invest in expansion, capacity and staffing challenges.
Sutter Health’s capital spending is up $85 million in 2022, including projects at Sutter Davis Hospital and Sutter Santa Rosa Regional Hospital. Over the coming years, Sutter plans to build outpatient care centers in Northern California, invest in technology, and create training programs to improve his talent pool.