Delivering Care In Northern California
A Thriving Competitive Healthcare Market
Northern California is home to a large healthcare region with more than a dozen hospital systems each with a unique set of cost drivers for healthcare providers.
Our Region Has:
15 Unique Hospital Networks
2,400+ Healthcare Facilities
Non-Traditional Health Providers
Large, Multi-State Healthcare Systems Dominate the National Market
The national healthcare market includes larger and more expansive health systems that span multiple states. Sutter Health’s Northern California footprint is a fraction of other healthcare systems’ size and volume.
1/7
By footprint, Sutter is just 1/7 of the size of the largest national hospital chain
Many Factors Influence Hospital Costs Across Northern California
Labor costs in Northern California remain among the highest in the nation.
Northern California is home to 11 of 12 of the nation’s highest hospital wage index values.¹Source: 2021 Medicare Inpatient Prospective Payment System Hospital Wage Index (HWI) HWI reflects the cost of wages and benefits for employees and contract employees in that hospital market
At Sutter, labor accounts for about half of operating expenses, with nationwide staffing shortages and inflation increasing those costs. Each year, Sutter must address $500 million in inflationary pressure from rising labor, supply and other costs.