Sutter Health Posts $613M Operating Loss

The financials were released days after California Attorney General Xavier Becerra announced a $575 million settlement with the Sacramento–based nonprofit health system.

Sutter Health reported a $613 million operating loss for the quarter that ended September 30, though total operating revenues inched up to $3.24 billion.

The Sacramento–based nonprofit health system reported more than $3.8 billion in total operating expenses, up more than $700 million year-over-year.

Additionally, Sutter's net cash provided by operating activities fell from $713 million in Q3 2018 to $477 million in Q3 2019.

The financials were released days after California Attorney General Xavier Becerra announced a $575 million settlement with the provider organization.

Sutter announced in late November that it was delaying the release of its financial disclosures as the organization finalized its settlement with Becerra.

Related: California AG Announces $575M Settlement in Sutter Antitrust Case

The settlement between Sutter and a group of self-funded employers along with the California Attorney General's office was reached in mid-October.

Sutter, which reported an operating revenue of $13 billion in 2018, was expected to face up to $2.7 billion in damages before a settlement was reached just ahead of when opening arguments were slated to begin on October 16.

According to its financial disclosure, Sutter will seek preliminary approval for its settlement during a court hearing in late February and expects a motion for final approval in June. 

Related: PBGH CEO on Sutter Health Antitrust Settlement: 'I Don't Think This Issue Will Go Away'

The system's net cash used in investing activities marked a loss of $317 million, an improvement compared to the $1.2 billion loss this time last year.

Sutter also saw its cash and cash equivalents slide by more than $50 million year-over-year, totaling $361 million at the end of Q3.