Sutter Health Sacramento Sierra Region Announces 2007 Financial Results     04-14-2008

April 14, 2008 | Sacramento, CA - Sutter Health Sacramento Sierra Region announced today that its hospitals and physician care centers achieved targeted financial goals in 2007, providing critical dollars to continue to renovate and construct new medical facilities, add new technology to enhance patient care, and continue its mission to care for all patients regardless of their ability to pay.

The Sacramento Sierra Region reported that 2007 income from the day-to-day operations of its hospitals, physician care centers and other services was $94 million, compared to $116 million in 2006. Investment income of $26 million pushed the region's 2007 total income to $120 million, compared to $147 million in total income, including investment income, in 2006.

Sutter's Sacramento Sierra Region, which encompasses hospitals, outpatient services and physician care centers in Auburn, Davis, Roseville and Sacramento, brought in $1.6 billion in revenue last year, up slightly from the year before.

As a not-for-profit, community-based organization, Sutter Health Sacramento Sierra Region reinvests any earnings back into the communities to enhance the health care available to residents. Sutter strives to achieve a positive operating margin in order to help fund capital and operating needs, purchase new medical equipment, and care for the poor and uninsured.

"Every day we strive to provide better, safer care to all of our patients, which includes providing efficient affordable care in a high quality setting," said Sarah Krevans, Sutter Health's Regional Executive Officer. Krevans said that the recently published survey of patient experiences and perceptions of hospital care - posted at a government Web site: www.hospitalcompare.hhs.gov - shows that between 72 - 81 percent of patients treated at Sutter hospitals across the Sacramento Sierra Region would definitely recommend their hospital to friends and family.

"As a longtime Sutter physician and a volunteer trustee, I want to know that our patients have uncomplicated access to all of our services and that we continue to offer care to every single patient regardless of their ability to pay," said William Au, M.D., a Sacramento neurologist and Chair of the Sutter Health Sacramento Sierra Region Board of Trustees. "We are continuing to recruit new physicians and expand our patient care services to meet their needs."

Sutter has committed to investing approximately $1.5 billion in the Sacramento Sierra Region over the next 10 years in hospital, outpatient and physician care center improvements, as well as new technology. 2007 was a notable year for Sutter in its efforts to expand health care services to residents throughout the region:

• Sutter Roseville Medical Center opened a new 90-bed Patient Care Tower that provides additional patient care services to meet the growing population needs of South Placer County. In addition, Sutter Roseville continued construction of its Level 3 Neonatal Intensive Care Unit with 16 licensed beds and a 40-bed Acute Rehabilitation Center for patients disabled by traumatic injuries and other neurological conditions. Both the NICU and Acute Rehabilitation Center will open for patients later this year.
  
  
• Sutter Medical Foundation and Sutter Medical Center, Sacramento made significant progress on the construction of a 210,000 square foot medical office building in midtown Sacramento, which will open in early 2009 with physician offices, ambulatory surgery services and digital imaging services for patients. SMF also has plans this year to open two new medical office buildings in Roseville and Carmichael and relocate its Rocklin medical office building.
  
  
• In midtown Sacramento, SMCS completed the construction of a 1,100-space Community Parking Garage that it opened in February for neighbors, businesses, nearby churches and staff to use. In addition, Sutter General Hospital is being significantly renovated and will be transformed into the 257-bed Ose Adams Medical Pavilion when the work is completed in 2011. The renovated building will include many services, including an entire floor dedicated to cardiovascular services, and a specially designed pediatric emergency department - the only one of its kind in the area. Across the street, groundbreaking of the new Anderson Lucchetti Women's and Children's Center will occur this fall, with completion slated for 2011.
  
  
• Sutter Davis Hospital completed final details on a $5.7 million remodeling project to enhance the Emergency Department and Surgery Center.
  
  
• Sutter Auburn Faith Hospital finalized plans for an $18.6 million remodeling project that will enlarge operating rooms, upgrade patient rooms and renovate many other places in the hospital. SAFH received Sutter Health Board approval this spring to move forward with the remodel.
  
  
• Additional land was secured in Elk Grove adjacent to the SMF physician offices and outpatient services, and the Sutter Health Sacramento Sierra Region Board of Trustees has approved in concept a community hospital and other services on the site. The project is currently in the design stage.
  
  
  During 2007, the Sacramento Sierra Region provided more than $97 million in services for the poor and underserved and on benefits for the broader community. This investment includes medical research, health education, community-based public benefit programs, charity care and the unpaid costs of state-sponsored programs. Sutter also continued its mission to make health care more accessible and affordable by offering free or substantial financial discounts to all uninsured patients regardless of their financial status. Sutter-affiliated hospitals have always provided free charity care to low-income patients and now offer substantial discounts to all patients who don't have insurance.
  
  As one of the area's largest private employers, Sutter Health in the Sacramento Sierra Region last year spent $650 million on employee salaries and benefits. In addition to strong salaries and benefits, Sutter Health's Sacramento Sierra Region invested in pension and retirement packages for more than 12,000 employees.
  
  Sutter Health's Sacramento Sierra Region encompasses hospitals, physicians and outpatient centers in Sacramento, Placer and Yolo counties. It is a part of the Sutter Health family of not-for-profit hospitals and physician organizations that share resources and expertise to advance health care quality. Serving more than 100 communities in Northern California, Sutter Health is a regional leader in cardiac care, and the care of women and children, and is a pioneer in advanced patient safety technology.