Sutter Health’s finances took a significant downturn last year after a strong performance in 2021, according to a report the nonprofit health system issued Wednesday.
Sutter Health suffered a net loss of $249 million in 2022, a major decline from the $1.14 billion gain the Sacramento, California-based company recorded in 2021. By the end of 2022, patient volume had nearly returned to where it were before the COVID-19 pandemic, which contributed to revenue rising 3.9% to $14.77 billion, the company reported.
Investment losses totaled $578 million, and expenses rose 3.3% to $14.5 billion last year. Employee compensation costs declined 1.7%, but the cost of purchased services rose 14.6%. Samuel Merritt University’s transition to a standalone nonprofit institution in January 2022 resulted in a $208 million hit.
The health system intends to continue investing in expansion, increasing capacity and addressing staffing problems, CEO Warner Thomas said this month.
Sutter Health’s capital spending grew by $85 million in 2022, including projects at Sutter Davis Hospital and Sutter Santa Rosa Regional Hospital. In the coming years, Sutter plans to establish ambulatory care centers in Northern California, invest in technology and build up training programs to improve its talent pipeline.