Sacramento-based Sutter Health’s net income plunged 80 percent, to $81 million, last year. Still, Sutter had nearly 9 percent gain in operating revenue, which rose to $11 billion last year from $10.1 billion in 2014.
The system lost $142 million in investments and trading transactions. And income from daily operations of its hospitals, care centers and other services totaled $287 million last year, down 31.5 percent from $419 million .
Also cutting into profit (although perhaps raising it in the future) was that Sutter invested $898 million in new facilities and technology. It noted major earthquake/safety-related hospital replacements and renovations, as well as new clinic construction.
Last year’s projects also included implementing its network-wide electronic health record system, providing more than 1 million patients full-time online access to their physicians and medical records.
Sutter cited the federal Affordable Care Act among its financial challenges. The ACA expanded coverage to many previously uninsured people, many of them now under Medi-Cal, but, Sutter noted, Medi-Cal reimbursements didn’t cover the costs of providing care to them.