Modern Healthcare September 23, 2017
When Sutter Health took the risk of starting a health plan in 2014, it also faced a risk of not launching one.
Sutter’s 24 hospitals operate in many of the same California markets as Kaiser Permanente, the granddaddy of integrated health systems, which directs its 11.9 million HMO members almost exclusively to its 39 hospitals and thousands of Permanente physicians scattered across the state.
Opening an HMO has been a costly play for Sutter. Its Sutter Health Plan lost $40.6 million in 2016 on revenue of $188.3 million. And after enrollment grew 27% in the first half of 2017 to 61,462, up from 48,284 at the end of 2016, losses for the six months totaled $12.2 million.
Sutter is one...
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