Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $48

• 1d · Related organizations

  $379,260

• 1f · All other contributions, gifts and grants

  $1,464,081

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $2,278,104,348 · related or exempt $2,278,104,348

• 2b · Program service revenue: HEALTHCARE RELATED JV INCOME

  total $14,010,549 · related or exempt $14,010,549

• 2c · Program service revenue: GUARANTEED PAYMENT JV INCOME

  total $1,585,406 · related or exempt $1,585,406

• 2d · Program service revenue: RENTAL TO AFFILIATES

  total $1,481,012 · related or exempt $1,481,012

• 3 · Investment income

  total $4,083,607 · excluded $4,083,607

• 4 · Income from investment of tax-exempt bond proceeds

  total $0

• 5 · Royalties

  total $0

• 6a · Gross rents

  real property $1,304,188

• 6b · Less rental expenses

  real property $340,857

• 6c · Rental income or loss

  real property $963,331 · personal property $0

• 6d · Net rental income or loss

  total $963,331 · excluded $963,331

• 7a · Gross sales of assets other than inventory

  securities $196 · other assets $227,680

• 7b · Less cost or other basis and sales expenses

  securities $108,396 · other assets $815

• 7c · Gain or loss

  securities -$108,200 · other assets $226,865

• 7d · Net gain or loss

  total $118,665 · excluded $118,665

• 8a · Fundraising events: gross income

  $0

• 8b · Fundraising events: direct expenses

  $0

• 8c · Net income from fundraising events

  total $0

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

  total $0

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 10c · Net income from sales of inventory

  total $0

• 11a · Other revenue: SFSC ADMIN FEE

  total $40,096 · unrelated business $40,096

• 11e · Other revenue, total

  $40,096

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $58,622 · program services $58,622

• 2 · Grants to domestic individuals

  total $15,000 · program services $15,000

• 3 · Grants to foreign organizations and individuals

  total $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $0

• 6 · Compensation of disqualified persons

  total $0

• 7 · Other salaries and wages

  total $344,576,561 · program services $328,574,871 · management and general $15,792,455 · fundraising $209,235

• 8 · Pension plan contributions

  total $15,805,414 · program services $15,080,544 · management and general $724,823 · fundraising $47

• 9 · Other employee benefits

  total $152,995,136 · program services $145,865,555 · management and general $7,010,807 · fundraising $118,774

• 10 · Payroll taxes

  total $30,102,680 · program services $28,721,710 · management and general $1,380,466 · fundraising $504

• 11a · Fees: management

  total $1,578,968 · program services $341,949 · management and general $1,237,019

• 11b · Fees: legal

  total $308,587 · program services $308,587

• 11c · Fees: accounting

  total $1,000 · management and general $1,000

• 11d · Fees: lobbying

  total $0

• 11e · Fees: professional fundraising services

  total $0

• 11f · Fees: investment management

  total $297,252 · management and general $297,252

• 11g · Fees: other

  total $958,376,606 · program services $937,697,742 · management and general $20,678,864

• 12 · Advertising and promotion

  total $44,967 · management and general $44,967

• 13 · Office expenses

  total $9,923,808 · program services $1,237,819 · management and general $8,684,694 · fundraising $1,295

• 14 · Information technology

  total $40,764,868 · program services $23,672,214 · management and general $17,092,654

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $61,299,987 · program services $56,445,116 · management and general $4,854,871

• 17 · Travel

  total $2,798,312 · program services $2,622,320 · management and general $175,916 · fundraising $76

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $107,015 · program services $66,851 · management and general $40,164

• 20 · Interest

  total $5,233,395 · program services $5,233,395

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $43,957,078 · program services $40,449,071 · management and general $3,508,007

• 23 · Insurance

  total $3,122,233 · program services $1,253,544 · management and general $1,867,914 · fundraising $775

• 24a · Other expenses: CAPITATED SERVICES

  total $177,712,917 · program services $177,712,917

• 24b · Other expenses: SYSTEM ALLOCATIONS

  total $144,446,454 · program services $101,299,821 · management and general $43,061,013 · fundraising $85,620

• 24c · Other expenses: MEDICAL SUPPLIES

  total $123,387,253 · program services $123,387,253

• 24d · Other expenses: PURCHASED SERVICES

  total $52,329,346 · program services $50,724,315 · management and general $1,549,482 · fundraising $55,549

• 24e · All other expenses

  total $22,113,456 · program services $19,985,373 · management and general $2,106,345 · fundraising $21,738

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $0 · end of year $0

• 2 · Savings and temporary cash investments

  beginning of year $145,452,418 · end of year $322,143,603

• 3 · Pledges and grants receivable

  beginning of year $375,516 · end of year $958,219

• 4 · Accounts receivable

  beginning of year $115,070,349 · end of year $136,363,426

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $358,421 · end of year $399,034

• 9 · Prepaid expenses and deferred charges

  beginning of year $657,533 · end of year $1,019,888

• 10a · Land, buildings and equipment: cost or other basis

  $952,652,109

• 10b · Land, buildings and equipment: accumulated depreciation

  $596,725,368

• 10c · Land, buildings and equipment, net

  beginning of year $290,439,542 · end of year $355,926,741

• 11 · Investments: publicly traded securities

  beginning of year $287,558 · end of year $933,316

• 12 · Investments: other securities

  beginning of year $0 · end of year $0

• 13 · Investments: program-related

  beginning of year $26,447,167 · end of year $28,293,665

• 14 · Intangible assets

  beginning of year $21,687,245 · end of year $29,605,217

• 15 · Other assets

  beginning of year $79,819,947 · end of year $120,019,381

• 17 · Accounts payable and accrued expenses

  beginning of year $246,224,230 · end of year $272,392,064

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $0 · end of year $0

• 20 · Tax-exempt bond liabilities

  beginning of year $143,249,498 · end of year $140,844,297

• 21 · Escrow or custodial account liability

  beginning of year $0 · end of year $0

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $58,843,103 · end of year $101,100,379

• 27 · Net assets without donor restrictions

  beginning of year $228,842,586 · end of year $477,415,929

• 28 · Net assets with donor restrictions

  beginning of year $3,436,279 · end of year $3,909,821

The filer's explanations (Part III)

SCHEDULE J, PART I, LINE 3

SUPPLEMENTAL COMPENSATION INFORMATION: THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE INDEPENDENT DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTER'S EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATION'S OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH.

SCHEDULE J, PART I, LINE 4A

THE FOLLOWING INDIVIDUALS RECEIVED Severance PAYMENTS DURING THE YEAR: James Conforti: $ 1,599,998 Theresa Frei: $ 982,821 Suheir Haddad: $ 157,174

SCHEDULE J, PART I, LINE 4B

NONQUALIFIED RETIREMENT PLAN: THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTH'S OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN AND SOCIAL SECURITY BENEFITS. SUTTER'S PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTH EMPLOYEES IS A COMBINATION OF 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PENSION PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA PROVIDES 6% TO 16% OF BASE SALARY PLUS ANNUAL INCENTIVE PLAN AWARD (COMMENSURATE WITH MANAGEMENT LEVEL). UNLIKE SUTTER HEALTH'S QUALIFIED PENSION PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTER'S NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT.

SCHEDULE J, PART I, LINE 7

NON-FIXED PAYMENTS: SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD, AVERAGE AMOUNT OF SPOT AWARDS TEND TO NOT EXCEED 5% TO 15% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP): THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, OPERATING UNIT AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. LONG TERM PERFORMANCE PLANS: SUTTER HEALTH ALSO EMPLOYS A LONG TERM PERFORMANCE PLAN WHICH IS DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTER'S LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL LONG TERM PERFORMANCE PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS.THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED BY THE COMPENSATION COMMITTEE PRIOR TO PAYMENT.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• TWIN CITIES SURGICAL HOSPITAL LLC

  SURGERY · CA · income $39,366,304 · assets $22,242,790

  Directly controlled by SUTTER VMF

• SUTTER TURLOCK SURGERY CENTER LLC

  SURGERY · CA · income $0 · assets $877,767

  Directly controlled by SUTTER VMF

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• SURG CTR OF ABSMC

  PATIENT CARE · CA

  Directly controlled by NA

• CA PACIFIC ADV IMAG

  PATIENT CARE · CA

  Directly controlled by NA

• SF ENDOSCOPY CENTER

  PATIENT CARE · CA

  Directly controlled by NA

• SUT FAIRFIELD SURG

  RELATED · PATIENT CARE · CA · 83.684% owned · share of income $1,704,165 · share of assets $4,299,933 · general or managing partner

  Directly controlled by SUTTER VMF

• SUT AMADOR SURG CTR

  RELATED · PATIENT CARE · CA · 41.081% owned · share of income -$495,767 · share of assets $316,984 · general or managing partner

  Directly controlled by SUTTER HLTH

• ROSEVILLE ENDOSCOPY

  RELATED · PATIENT CARE · CA · 40% owned · share of income $4,369,837 · share of assets $2,460,257 · general or managing partner

  Directly controlled by NA

• MEMORIAL MED BLDG

  OFFICE RENTAL · CA

  Directly controlled by NA

• MAGNETIC IMAGING AF

  PATIENT CARE · CA

  Directly controlled by NA

• ASC OPTRS-SNTA ROSA

  CARE MANAGEMENT · CA

  Directly controlled by NA

• ASC OPTRS-SLO LLC

  CARE MANAGEMENT · CA

  Directly controlled by NA

• ICG CREDIT OPP FUND

  INVESTMENTS · DE

  Directly controlled by NA

• CARLSBAD SURG CTR

  PATIENT CARE · CA

  Directly controlled by NA

• DIVISADERO HLDS LLC

  CARE MANAGEMENT · CA

  Directly controlled by NA

• Auburn Surg CTR

  RELATED · patient care · CA · 17.572% owned · share of income $257,695 · share of assets $546,213

  Directly controlled by SUTTER HLTH

• ASC OPERATORS LLC

  RELATED · CARE MANAGEMENT · CA · 45% owned · share of income $9,760,025 · share of assets $14,232,775

  Directly controlled by SUTTER HLTH

• PENINSULA ENDOSCOPY

  PATIENT CARE · CA

  Directly controlled by NA

• S Placer Surg Ctr

  Patient Care · CA

  Directly controlled by NA

• Sac Surg Ctr Ass

  Patient Care · CA

  Directly controlled by NA

• FORT SUT SURG CTR

  Patient Care · CA

  Directly controlled by NA

• Sut Alhambra Surg

  Patient Care · CA

  Directly controlled by NA

• D E SHAW ALP PLUS

  Investment · DE

  Directly controlled by NA

• ICG CR OPP FUND 1A

  Investment · DE

  Directly controlled by NA

• ICG CR OPP FUND 2A

  Investment · DE

  Directly controlled by NA

• MAKENA RE II

  Investment · CJ

  Directly controlled by NA

• D E SHAW ALL CTRY

  Investment · DE

  Directly controlled by NA

• ICG SPEC OPP FND I

  Investment · DE

  Directly controlled by NA

• TAP CMDITYBLDR FUND

  INVESTMENT · NY

  Directly controlled by NA

• MAKENA STRATEGIC OPPORTUNITIES FUND - SH

  INVESTMENT · DE

  Directly controlled by NA

• EHC SURGERY CENTER

  PATIENT CARE · CA

  Directly controlled by NA

• AG Net Lease Realty Fund V-QTE

  INVESTMENT · CA

  Directly controlled by NA

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• SUTTER HEALTH DEFERRED COMP PLANS' TRUST

  TRUST · RABBI TRUST · CA · controlled entity

  Directly controlled by NA

• NORTHWOOD EUROPE TE FEEDER LP

  C CORP · HOLDING COMPANY · CJ · controlled entity

  Directly controlled by NA

• WilSOP Segregated Portfolio 1

  C CORP · INVESTMENT · CJ · controlled entity

  Directly controlled by NA

• WilSOP Segregated Portfolio 2

  C CORP · INVESTMENT · CJ · controlled entity

  Directly controlled by NA

• BRIGADE LEVERAGED CAPITAL STRUCTURE OFFS

  C Corp · INVESTMENT · CJ · controlled entity

  Directly controlled by NA

• AQR MULTI-STRATEGY FUND XXIII LP

  C CORP · INVESTMENT · CJ · controlled entity

  Directly controlled by NA