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Sutter Health Announces 2008 Financial Performance
Date:4/9/2009

SACRAMENTO, Calif., April 9 /PRNewswire/ -- The Sutter Health network of doctors, hospitals and other health care service providers announced its financial performance for 2008. Sutter Health's combined 2008 systemwide income from the day-to-day operations of its hospitals, care centers and other services was $463 million, compared to $471 million in 2007. Sutter Health also posted a loss of $277 million in investment income and changes in net unrealized gains and losses from investments classified as trading in 2008, compared to a gain of $152 million in 2007. Total income for 2008 was $186 million, compared to $623 million in 2007. The system's total 2008 revenues were $8.3 billion, compared to $7.7 billion in revenues in 2007.

As a not-for-profit health care organization, Sutter Health reinvests its earnings into programs, services, technology and facilities in the communities it serves. The system also invested *$505 million to fortify the Sutter Health Pension Plan in light of investment losses.

While Sutter's investment losses in 2008 and an uncertain economy will require the system to moderate its planned capital spending, Sutter Health intends to commit approximately $1 billion to capital projects in 2009. Major medical center construction projects in Burlingame and Sacramento are well under way, and design and entitlement processes for seismic-replacement hospitals in Oakland and San Francisco are moving forward. Sutter Health is also proceeding with plans to build new hospitals in Castro Valley and Santa Rosa.

During 2008, Sutter provided even more care and services for the poor and underserved and benefits for the broader community. Sutter Health's 2008 commitment to community benefit was $599 million (compared to **$548 million in 2007) and includes the cost of providing charity care, the unpaid costs of participating in Medi-Cal, and investments in medical research, health education and communit
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