Dive Brief:
- As of 2014, Sutter Health is again operating in the black due to rising patient revenues and a decrease in its provision for bad debts.
- The California health system reported a $419 million operating surplus in 2014 on $10.2 billion in revenue, after reporting a 22 million operating deficiency on $9.6 billion in revenue in 2013.
- The system's 5% increase in revenue has been attributed, in part, to a more than 50% cut in its provision for bad debt.
Dive Insight:
Sutter Health slashed its bad debt provision from $410 million in 2013 to $189 million in 2014. The move was likely due to Medicaid expansion under the Affordable Care Act, which has led to a smaller number of people being uninsured. Stable operating expenses and a decrease in costs also contributed to the system's improved financial position.