Hospital Economics

The Sac Bee considers Sutter Health to be a hometown enterprise, so they report on Sutter's financials.  Since Mills-Peninsula is our hometown hospital, I think along the same lines, so here is the latest financial report 

Sacramento-based Sutter Health reported net income of $81 million in 2015, a nearly 80 percent plunge from $402 million in 2014.  The nonprofit health system cited multiple factors that prompted the decline.

Sutter said it lost $142 million in investments and trading transactions last year, compared with a $39 million gain in 2014. The system said income from daily operations of its hospitals, care centers and other services totaled $287 million last year, down 31.5 percent from $419 million the prior year.

Sutter also noted that it invested $898 million in new facilities and life-saving technology throughout Northern California in 2015. Sutter said major earthquake/safety-related hospital replacements and renovations, plus new physician clinic construction projects, were ongoing throughout Northern California and the Bay Area last year.

The investment losses are understandable, but the 31.5% decline in operating income (might not be the exact right term but must be analogous to a regular company) merits another look.  No cause to go to emergency, though.

 

Comments

[Editor]

Doug Radtke posted this on the wrong thread (Please use the category list on the right hand frame to find something close):

Please if anyone is in Ray Park or knows friends and neighbors in Ray Park to please read this message or pass it along.

There are many people who question the intent and scope of the proposed Peninsula Healthcare District development - I was unaware until now that PHCD is due for a LAFco review (LAFco = Local Agency Formation Committee). This meeting and review is happening April

This presents a clear opportunity to give the LAFco board feedback from the community NOW about how PHCD is not listening to the community it alleges to serve.

On MCTV here is a replay. Cheryl Fama's presentation is at the time mark 18:00 to 34:30 for interest parties.

https://www.youtube.com/watch?v=rVR9_4kV...

The draft report she refers to is available here from March 2017

http://lafco.smcgov.org/documents/circul...

You might ask "What Can I Do"?

This is YOUR opportunity to have an additional avenue outside of the Burlingame planning commission and city council to HALT the project and potentially dissolve Peninsula Healthcare District with pressure that may come from LAFCo and state legislators.

How do you do that?

I highly recommend writing a letter and/or email regarding PHCD to:

Martha Poyatos, Executive Officer
San Mateo LAFCo
455 County Center
Redwood City, CA 94063
(650) 363‐4224 (650) 363‐4849 (FAX)
mpoyatos@smcgov.org

I will be writing a letter tonight in opposition of the project - and with specific statements relevant to LAFCo about how I feel PHCD is overstepping their legislative intent.

As Cheryl says in the video - healthcare districts were formed to BUILD and OPERATE hospitals. Just like Sequoia, Peninsula does NOT RUN AND OPERATE A HOSPITAL - The hospital is run by SUTTER HEALTH and PHCD is merely the "landlord".

There is NOTHING PHCD does that can not be done by the county or local government.

$6 million+ a year is given to PHCD from property taxes - if PHCD were to be dissolved, all $6 million would be returned to your local governments and local schools within the PHCD boundaries... they NEED the revenue more than the non-profits who receive millions of dollars in grants from PHCD that sometimes do not benefit YOU!