Sutter Health suffered a severe financial downturn last year after posting a strong 2021, according to a report released Wednesday by the nonprofit health system.
Sutter Health took a big hit with a 2022 net loss of $249 million, a sharp drop from the $1.14 billion gain recorded by the Sacramento, Calif. system in 2021. Patient numbers are almost back to pre-COVID-19 pandemic levels by the end of 2022, which the company reported led to a 3.9% increase in revenue to $14.77 billion. Operating income rose nearly 40% to $278 million.
Investment losses totaled $578 million last year as expenses rose 3.3% to $14.5 billion. The cost of employee compensation fell 1.7 percent, but the cost of purchasing services rose 14.6 percent. Samuel Merritt University transitioned to an independent not-for-profit institution in January 2022, generating a loss of $208 million. The school has been a Sutter affiliate since 1999.
Chief Executive Warner Thomas said this month that the health system intends to continue investing in expansion, increasing capacity and addressing staffing issues.
Sutter Health’s capital expenditures are up $85 million in 2022, including projects at Sutter Davis Hospital and Sutter Santa Rosa Regional Hospital. Over the next few years, Sutter plans to build outpatient care centers in Northern California, invest in technology and build training programs to improve its talent pipeline.
