California-based Sutter Well being suffered an $857 million loss within the first half of the yr due to main declines in income because of the COVID-19 pandemic.
Sutter reported in its newest earnings launched final week that its losses didn’t simply stem from operations but in addition from investments.
“The necessity for Sutter to regulate its whole built-in community to answer COVID-19 has been, and continues to be, a expensive and troublesome endeavor,” the report mentioned.
The system reported a $557 million decline in working income for the primary half, buttressed by declines in affected person revenues.
Sutter skilled fast declines in affected person income within the first half of the yr as states required the cancellation of elective procedures and sufferers have been hesitant to return again to the hospital.
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The 24-hospital system generated $4.eight billion in internet affected person income within the first half in contrast with $5.6 billion throughout the identical interval in 2019.
Affected person income from industrial plans suffered essentially the most, producing $2.7 billion in income, a $543 million drop in contrast with the primary half of 2019.
Medicare income additionally declined by $179 million within the first half.
Sutter has additionally confronted greater working bills ($6.6 billion) within the first six months in contrast with $6.5 billion in 2019.
The system additionally suffered main losses from investments ($304 million). Sutter pulled its monetary outlook for the remainder of the yr.
“Decreased working revenues and funding losses (even when unrealized) as a consequence of market volatility could adversely influence monetary covenant calculations and Sutter’s financial safety,” the earnings report mentioned.
Like different well being programs, Sutter Well being obtained $400 million from a $175 billion supplier reduction fund handed by Congress as a part of the CARES Act.
The system additionally obtained $1 billion from the Medicare Advance and Accelerated Fee program, which gave out advance Medicare funds to hospitals. Amenities have to begin repaying the loans as quickly as this month.
Sutter mentioned it hopes to repay the mortgage inside a yr.
The system is the newest to submit main losses because of the COVID-19 pandemic.
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Windfall St. Joseph posted a $538 million loss within the first half of the yr. The system reported elevated prices in not simply private protecting tools but in addition staffing to fight surges of the COVID-19 pandemic.
Bigger hospital programs resembling HCA and Common Well being Providers, however, have posted earnings of their second-quarter outcomes.
The most recent statements come as hospital teams proceed to press Congress for extra reduction funding, however talks on a brand new reduction bundle have stalled.