Annual Report Snapshot Brochure - Sutter Health

A Snapshot of
Sutter Health’s 2007
Report to Our Communities
your partner in shaping health care
View our entire online annual report at
http://sutterhealth.org/annualreport
our partner in shaping health care
your partner in shaping health care
your partner in shaping health care

President’s Message
We at Sutter Health have a vision for the future of health care, and it
goes far beyond bricks and mortar. We’re transforming health care in all
regards by focusing on the areas that matter most to you – quality,
access and affordability – to name a few.
Pat Fry
In 2007, we continued to make dramatic improvements in the quality of services we provide. A fine example
is the development of our new Sutter Medical Network. The network is taking health care to a whole new
level by bringing together our family of physicians in a more organized system so our patients have better
and more consistent access to care.
As early adopters of emerging technologies, I’m proud of the tremendous strides Sutter Health is making in
implementing one of the largest and most complex electronic health records (EHR) in the country. Our efforts
to implement an EHR in both our physician organizations and hospitals will fundamentally reshape how
health care is delivered. Eventually, it will further connect millions of patients across Northern California
with our family of physicians, hospitals and other care centers.
Throughout Sutter Health, there are many other exciting transformations taking place. Over the next 10
years, we will invest billions of dollars in building replacements, new care centers as well as in new technology
and medical equipment. From state-of-the art health care campuses to convenient neighborhood express
medical clinics, we’re working like never before to deliver high-quality care and top-notch service at a fair
price.
I’m extremely proud of the achievements we’re making in enhancing care for our communities. Whether you
receive care in one of our medical foundations, hospitals or even in the comfort of your home, we want to
be sure your experience is the best it can be.
As you read this brochure, you’ll get a snapshot of how Sutter Health is enhancing care in our communities.
I hope you take a few minutes to further explore the innovative things our not-for-profit network is doing
by visiting our electronic, online annual report at http:// sutterhealth.org/annualreport. There you can see
firsthand, through inspiring videos and other interactive features, how we’re partnering with you to shape
health care.
Sincerely,
Pat Fry
President and CEO, Sutter Health
Visit our online 2007 Report to Our Communities at
http://sutterhealth.org/annualreport

Shaping Health Care
Here’s a snapshot of some of the ways our Sutter Health family is working together to transform health care.
Our Vision of the Future
Sutter Health is creating the Sutter Medical Network – a network of more than 3,000
Northern California primary care and specialist physicians committed to providing
patients with more convenient access to consistently high-quality health care services.
Our Focus on Quality
Providing quality care is our top priority. One-third of Sutter Health affiliated hospitals
are achieving top U.S. performance in at least three of five quality measures (with
no measures below average). Only 5 percent of other U.S. hospitals nationwide can say
the same.
“While the words ‘Sutter physician’ have always stood
for quality, the Sutter Medical Network will more
clearly define what it means to be a Sutter-affiliated
doctor and how this benefits patients.”
~ David Druker, M.D., CEO of the
Sutter-affiliated Palo Alto Medical Foundation
who led the development of the network
“At Sutter Health, providing quality care is
our top priority.”
~ Gordon Hunt M.D., Sutter Health’s chief
medical officer
Our Investment in Patient Safety
Sutter Health is committed to embracing a variety of innovative technologies that enable
our caregivers to provide the best possible care to patients. As part of this commitment,
our network is implementing one of the largest and most complex electronic
health record (EHR) systems in the country.
“The electronic health record saved my life.”
~ Julie Alvarez, Sutter Medical
Foundation patient
Our Dedication to Convenient Access
Our Sutter Health family is working together to bring high-quality health care services
closer to patients’ homes. From 2008 through 2017, our network will invest about $10
billion to further improve, replace or build dozens of community-based health care
centers throughout Northern California. This investment includes bringing lifesaving
technologies to our communities.
“Our vision is to offer patients consistently superb and
affordable health care where and when they need it.”
~ Pat Fry, Sutter Health president and CEO
Our Commitment to Our Communities
Meeting community health care needs is the cornerstone of our not-for-profit mission.
During 2007, we increased our investment in providing care and services for the
poor and underserved and benefits for the broader community to $492 million. Our
system’s charity care contribution increased from $73 million in 2006 to a record $78
million in 2007.
Our Culture of Excellence and Teamwork
At Sutter Health, we’re devoted to the well-being of our patients and employees.
Through enhanced benefits like our Sutter Health Retirement Plan, competitive wages
and diverse career opportunities, our network is able to provide employees a supportive
work environment that helps us attract and retain qualified and compassionate
professionals.
“Project Homeless Connect relies on the compassion
and generosity of organizations like Sutter Health, to
fulfill our mission of connecting San Francisco’s most
vulnerable community members with much-needed
services. Sutter Health provides not only monetary
support, but also backs up its commitment to community
benefit by providing hundreds of staff to volunteer
at the event.”
~ Judith Klain, director, Project Homeless Connect
“I work with an amazing team, and I’m so proud to be a
part of our Sutter Health family.”
~ Roseangel Klein, R.N., BSN, Oncology Unit,
Sutter-affiliated California Pacific Medical Center
Our Generous Donors
Thanks to the support of our generous donors, over the past three years, Sutter Health
has raised more than $250 million to help our network bring an enhanced level of care
to patients and communities.
“To me, community means helping others. If everyone
gives just a little, you can reach your goals.”
~ Archit Dua, fifth-grade fundraiser who
helped raise $106 for Palo Alto Medical
Foundation’s Camino Medical Group

Financial Review
Balance Sheets (Dollars In Millions)
SUTTER HEALTH AND AFFILIATES
2007 2006
Property and equipment $ 3,807 $ 3,198
Cash and marketable securities 3,234 2,389
Other assets 1,636 1,458
Total assets 8,677 7,045
Long-term obligations 2,366 1,610
Other liabilities 1,556 1,475
Net assets 4,755 3,960
Total liabilities and net assets 8,677 7,045
Statements of Operations (Dollars In Millions)
SUTTER HEALTH AND AFFILIATES
2007 2006
Patient services revenues $ 6,186 $ 5,787
Other revenues 1,465 1,336
Total revenues 7,651 7,123
Salaries and employee benefits 3,294 3,086
Other expenses 3,428 3,185
Capital costs 458 400
Total expenses 7,180 6,671
Income from Operations 471 452
Investment income & Unrealized net
gains/losses on trading investments* 152 171
Income 623 623
*During 2007, Sutter Health determined that investment income previously included as a component of operating income
should be included as a separate component of income. Therefore, certain amounts for 2006 in this statement have been
reclassified to reflect this change. This classification change did not impact the increase in net assets previously reported.
Expenses 2007 45.8%
Salaries and
Employee Costs
Payer Mix 2007
40%
Commercial
6.4%
Capital
Costs
12.2%
Supplies
13.7% Other
21.9%
Purchased
Services
39%
Medicare
15%
Medi-Cal
3% Self-pay
3%
Other

Financial Review
Community Benefit (Dollars In Millions)
Traditional charity care covers health care services provided to persons who meet certain criteria and
cannot afford to pay. Sutter Health had write-offs of charges for charity care services to its patients
totaling $301 million in 2007 and $286 million in 2006. The following is a summary of Sutter Health’s
estimated costs of providing services to the poor and broader community.
Services for the poor and underserved:
SUTTER HEALTH AND AFFILIATES
2007 2006
Traditional Charity Care $ 78 $ 73
Unpaid costs of public programs:
Medi-Cal 301 308
Other public programs 34 32
Other benefits for the poor and underserved 25 17
Total quantifiable benefits for the poor and underserved 438 430
Benefits for the broader community
Nonbilled services 22 18
Education and research 22 26
Cash and in-kind donations 9 7
Other community benefits 1 2
Total quantifiable benefits for the broader community 54 53
Total 492 483
Guidelines
Sutter Health and many other health care systems around the country voluntarily subscribe to a common
definition of community benefit developed by the Catholic Health Association. Community benefits are
programs or activities that provide treatment and/or promote health and healing as a response to community
needs; they are not provided for marketing purposes. Community benefit:
• Generates a low or negative financial return
• Responds to needs of special populations such as persons living in poverty and other
disenfranchised persons
• Supplies services or programs that would likely be discontinued – or would need to be provided by
another not-for-profit or government provider – if the decision was made on a purely financial basis
• Responds to public health needs
• Involves education or research that improves overall community health
Services for the poor and underserved include services provided to persons who cannot afford health care
because of inadequate resources and/or are uninsured or underinsured, as well as the unpaid costs of public
programs treating Medi-Cal and indigent beneficiaries. Costs are computed based on a relationship of costs to
charges. Services for the poor and underserved also includes the cost of other services for indigent populations,
and cash donations on behalf of the poor and needy.
Benefits for the broader community include unpaid costs of providing the following services: health screenings
and other health-related services, training health professionals, educating the community with various seminars
and classes, the cost of performing medical research and the costs associated with providing free clinics and
community services. Benefits for the broader community also include contributions Sutter Health makes to
community agencies to fund charitable activities.
In keeping with voluntary national community benefit reporting, Sutter Health does not report the unpaid costs
of treating Medicare patients as community benefit.

Our Family
Sutter Health’s not-for-profit family includes some of the most respected health care organizations in
Northern California.
The Sutter Medical Network
Medical Foundations:
Palo Alto Medical Foundation
(including Palo Alto Foundation Medical Group;
formerly Palo Alto Medical Clinic, Camino
Medical Group and Santa Cruz Medical Clinic)
Physician Foundation at California Pacific
Medical Center
(including Physician Foundation Medical Associates,
Inc. and Marin Headlands Medical Group)
Sutter East Bay Medical Foundation
(including East Bay Physicians Medical Group)
Sutter Medical Foundation North Bay
(including Sutter Medical Group of the Redwoods)
Sutter Gould Medical Foundation
(including Gould Medical Group)
Sutter Medical Foundation
(including Sutter Medical Group, Sutter Neuroscience
Medical Group and Sutter West Medical Group)
Sutter North Medical Foundation
(including Sutter North Medical Group)
Sutter Regional Medical Foundation
(including Solano Regional Medical Group
and Sutter Delta Medical Group)
Independent Practice Associations
Alta Bates Medical Group
Marin IPA
Mills-Peninsula Medical Group
Sutter Independent Physicians
Hospitals
Alta Bates Summit Medical Center, Berkeley
and Oakland
California Pacific Medical Center, San Francisco
-Including the St. Luke’s Campus, formerly
St. Luke’s Hospital
Eden Medical Center, Castro Valley
-Eden Medical Center, San Leandro Hospital Campus
Kahi Mohala, A Behavioral Healthcare System, Ewa, HI
Marin General Hospital, Greenbrae
Memorial Hospital Los Banos, Los Banos
Memorial Medical Center, Modesto
Menlo Park Surgical Hospital, Menlo Park
Mills-Peninsula Health Services, Burlingame
Novato Community Hospital, Novato
Sutter Amador Hospital, Jackson
Sutter Auburn Faith Hospital, Auburn
Sutter Coast Hospital, Crescent City
Sutter Davis Hospital, Davis
Sutter Delta Medical Center, Antioch
Sutter Lakeside Hospital & Center for Health, Lakeport
Sutter Maternity & Surgery Center of Santa Cruz
Sutter Medical Center, Sacramento
-Sutter General Hospital
-Sutter Memorial Hospital
-Sutter Center for Psychiatry
Sutter Medical Center of Santa Rosa, Santa Rosa
-Warrack Campus
Sutter Roseville Medical Center, Roseville
Sutter Solano Medical Center, Vallejo
Sutter Tracy Community Hospital, Tracy
Long-Term Care Centers
Baywood Court Skilled Nursing Facility, Castro Valley
Irene Swindells Alzheimer’s Residential
Care Center, San Francisco
Laurel Grove Hospital, Castro Valley
Sutter Oaks Nursing Center, Sacramento
Sutter Senior Care PACE Program, Sacramento
Cancer Centers
Alta Bates Comprehensive Cancer Center,
Berkeley and Oakland
California Pacific Medical Center, San Francisco
Dorothy E. Schneider Cancer Center at Mills-Peninsula
Eden Medical Center, Castro Valley
Marin General Hospital Cancer Institute, Greenbrae
Memorial Regional Cancer Center, Modesto
Sutter Cancer Center, Sacramento
Sutter Cancer Center, Roseville
Sutter Solano Cancer Center
These programs approved by the American College
of Surgeons Commission on Cancer.
Research Institutes
California Pacific Medical Center, San Francisco
Palo Alto Medical Foundation Research Institute,
Palo Alto
Sutter Health Institute for Research and
Education, San Francisco
Sutter Institute for Medical Research, Sacramento
Home Health and Hospice Services
Coming Home Hospice
Sutter Auburn Faith VNA & Hospice
Sutter Coast Home Care
Sutter Hospice / Sacramento
Sutter Infusion & Pharmacy Services
Sutter Lakeside Home Medical Services
Sutter North Home Health Agency
Sutter VNA / Sacramento and Davis
Sutter VNA / Marin
Sutter VNA & Hospice / Concord
Sutter VNA & Hospice / Emeryville
Sutter VNA & Hospice / Roseville
Sutter VNA & Hospice / San Francisco
Sutter VNA & Hospice / San Leandro
Sutter VNA & Hospice / San Mateo
Sutter VNA & Hospice / Santa Rosa
VNA of the Central Valley
VNA of Santa Cruz County
Express Medical Clinics
Sutter Express Care
Elk Grove, Folsom, Gold River, Greenhaven,
Natomas and Roseville
Education and Training
California Pacific Medical Center Graduate
Medical Education, San Francisco
Samuel Merritt College, Oakland and Sacramento
Sutter Center for Health Professionals, Sacramento
Sutter Health Family Practice Residency Program,
Sacramento and Davis
Sutter Medical Center of Santa Rosa Family
Practice Residency Program
Philanthropic Foundations
Alta Bates Summit Foundation
California Pacific Medical Center Foundation
Delta Memorial Hospital Foundation
Lakeside Wellness Foundation
Marin General Hospital Foundation
Mills-Peninsula Hospital Foundation
Sutter Amador Hospital Foundation
Sutter Auburn Faith Hospital Foundation
Sutter Davis Hospital Foundation
Sutter Medical Center Foundation, Sacramento
Sutter North Medical Foundation:
Philanthropy Committee
Sutter Roseville Medical Center Foundation
Sutter Solano Charitable Foundation
Sutter VNA and Hospice Foundation
Tracy Community Memorial Hospital Foundation
Memorial Hospital Los Banos Foundation
Eden Medical Center Foundation
Memorial Hospital Foundation of Stanislaus County
Our Vital Statistics
Births 40,051
Discharges 223,621
ER Visits 778,791
Home Health Visits 327,061
Hospice Visits 195,848
Outpatient Visits 2,299,471
Hospitals 27
Physicians 3,500
Network & Affiliate Employees 44,828
Philanthropic Foundations 18
Cardiac Centers 8
Cancer Centers 10
Acute Rehabilitation Centers 5
Behavioral Health Centers 9
Trauma Centers 4
Neonatal ICUs 10
Sutter Express Care Medical Clinics 6
Volunteers
5,000 (approx.)