Sutter Health, Sacramento Sierra Region, is a non-profit organization, which has been registering a whopping growth of 34% in its net income. The figures moved to $402 million in 2014, from $300 million in 2013. Added to the net income, the operating costs of the company had also registered an increase from $9.6 billion to $10.2 billion for the same years. Although, the figures might indicate that there has been a rise in the demand for healthcare, but that might not be the case.
Looking at detailed financial reports indicates that the company has actually spent about $983 million in new facilities and technology in the state of California alone. This also included the cost of renovations in the state facilities.
Pat Fry, the president and CEO of the company, stated that, “Our communities count on us to make the investments needed to ensure our hospitals meet earthquake standards and our physician network keeps up with patient demand and expectations for high-quality and convenient access” (As quoted by the daily times gazette).
The spending in the state of California has been rightly justified, since the company gets about 21% of its yearly patients in California alone. Sutter health also reported a major downfall in community benefit investment, from $901 million in 2013 to $767 million in 2014.
This included the cost of charity care and unreimbursed costs of health care. Most of this investment is used by the company for providing health education, operating community clinics and parental care for poor patients.
The growth is encouraging for all, not only for the ones associated with the business, but for common people as well. This has indicated that the company is aiming to provide quality healthcare facilities to people from all walks of life, without any discrimination. Whether the same trend expands to other states as well, we will have to wait and see.
It is however very clear that the expansion in California would definitely people from other states to use the company’s healthcare facilities encourage.