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> Their prize is having some very profitable hospitals, including the second most profitable in the nation (almost $300M / year in profit at one hospital). Yea
by SkyPuncher 9y ago
> Their prize is having some very profitable hospitals, including the second most profitable in the nation (almost $300M / year in profit at one hospital).
Yea, but this is on over $12 billion in revenue. That's less than 2.5% margin.
- aaavl2821 9y agothe article i saw said that the $270M profit was for a single hospital, sutter memorial hospital in sacramento, which does revenue of $3B per a separate article i found. it is interesting that sutter's overall system-level profit is $370M. i think they have a few other very profitable hospitals as well. they must spend a lot on corporate sg&A and executive salaries (their CEO has a $7-10M salary IIRC) https://www.forbes.com/sites/brucelee/2016/05/08/very-profitable-nonprofit-hospitals-but-where-are-the-profits-going/#6303d5636b22 https://www.forbes.com/sites/brucelee/2016/05/08/very-profit... https://www.beckershospitalreview.com/lists/100-top-grossing-hospitals-in-america-2013.html https://www.beckershospitalreview.com/lists/100-top-grossing...
- SkyPuncher 9y agoLarge salaries for the CEO aren't really that surprising. For a non-profit like a hospital, they base CEO salary on comparables in the industry.
- aaavl2821 9y agoI think sutters CEO is in the top 3 or so highest paid non profit CEOs, and sutter may be the biggest / second biggest non profit health system in the country, so I don't know that there are many industry comparables I'd love to see a breakout of corporate g&a vs provider level g&a at sutter vs a set of comparable systems. All that "non-profit" profit has to go somewhere