Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $2,184

• 1d · Related organizations

  $5,238,597

• 1e · Government grants (contributions)

  $3,973,094

• 1f · All other contributions, gifts and grants

  $3,378,653

• 1g · Noncash contributions included above

  $36,872

• 2a · Program service revenue: MANAGEMENT SERVICES EXEMPT AFFIL.

  total $1,688,609,007 · related or exempt $1,688,609,007

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

  total $28,443,840 · related or exempt $28,443,840

• 2c · Program service revenue: AFFILIATE RENTAL INCOME

  total $1,553,107 · related or exempt $1,553,107

• 2d · Program service revenue: CAPITATION REVENUE

  total $3,170,231 · related or exempt $3,170,231

• 3 · Investment income

  total $157,807,594 · unrelated business -$1,761,145 · excluded $159,568,739

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

  total $0

• 5 · Royalties

  total $0

• 6a · Gross rents

  real property $1,224,954

• 6b · Less rental expenses

  real property $1,186,565

• 6c · Rental income or loss

  real property $38,389 · personal property $0

• 6d · Net rental income or loss

  total $38,389 · excluded $38,389

• 7a · Gross sales of assets other than inventory

  securities $13,985,328,735 · other assets $11,577

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

  securities $14,011,405,349 · other assets $0

• 7c · Gain or loss

  securities -$26,076,614 · other assets $11,577

• 7d · Net gain or loss

  total -$26,065,037 · excluded -$26,065,037

• 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: MANAGEMENT

  total $15,134,885 · unrelated business $15,134,885

• 11b · Other revenue: REPAIRS & MAINTENANCE

  total $1,132,401 · unrelated business $1,132,401

• 11c · Other revenue: PHARMACY

  total $8,058 · unrelated business $8,058

• 11d · All other revenue

  total $232,849 · unrelated business $232,849

• 11e · Other revenue, total

  $16,508,193

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,473,088 · program services $1,473,088

• 2 · Grants to domestic individuals

  total $0 · program services $0

• 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 $32,813,627 · management and general $32,813,627

• 6 · Compensation of disqualified persons

  total $1,316,842 · management and general $1,316,842

• 7 · Other salaries and wages

  total $597,040,224 · program services $590,684,074 · management and general $6,356,150

• 8 · Pension plan contributions

  total $23,763,688 · program services $22,738,941 · management and general $1,024,747

• 9 · Other employee benefits

  total $263,069,472 · program services $246,821,947 · management and general $16,247,525

• 10 · Payroll taxes

  total $55,242,671 · program services $54,698,999 · management and general $543,672

• 11a · Fees: management

  total $127,652,210 · program services $106,108,334 · management and general $21,543,876

• 11b · Fees: legal

  total $40,816,782 · program services $40,816,782

• 11c · Fees: accounting

  total $3,826,166 · program services $3,826,166

• 11d · Fees: lobbying

  total $2,065,444 · management and general $2,065,444

• 11e · Fees: professional fundraising services

  total $0

• 11f · Fees: investment management

  total $20,756,060 · management and general $20,756,060

• 11g · Fees: other

  total $4,585,822 · program services $4,574,484 · management and general $11,338

• 12 · Advertising and promotion

  total $13,556,854 · program services $13,556,304 · management and general $550

• 13 · Office expenses

  total $39,565,922 · program services $39,504,141 · management and general $61,781

• 14 · Information technology

  total $286,103,402 · program services $285,914,402 · management and general $189,000

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $30,541,633 · program services $30,541,633

• 17 · Travel

  total $6,058,793 · program services $5,190,737 · management and general $868,056

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $9,056,548 · program services $1,599,688 · management and general $7,456,860

• 20 · Interest

  total $22,540,583 · program services $22,540,583

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $96,831,488 · program services $96,831,488

• 23 · Insurance

  total $1,610,066 · program services $1,610,066

• 24a · Other expenses: PURCHASED SERVICES

  total $213,066,639 · program services $209,988,497 · management and general $3,078,142 · fundraising $0

• 24b · Other expenses: REPAIRS AND MAINTENANCE

  total $94,135,014 · program services $93,935,323 · management and general $199,691 · fundraising $0

• 24c · Other expenses: UNINSURE LITIGATION/SETTLEMENT

  total $32,970,242 · program services $32,270,242 · management and general $700,000 · fundraising $0

• 24d · Other expenses: FEDERAL INCOME TAXES - UBI

  total $1,009,456 · program services $697,056 · management and general $312,400 · fundraising $0

• 24e · All other expenses

  total $48,774,864 · program services $38,740,840 · management and general $10,034,024

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 -$28,742,153 · end of year $73,336,310

• 3 · Pledges and grants receivable

  beginning of year $53,209 · end of year $856,023

• 4 · Accounts receivable

  beginning of year $0 · end of year $0

• 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 $3,257,588 · end of year $3,170,498

• 8 · Inventories for sale or use

  beginning of year $11,853,850 · end of year $5,846,322

• 9 · Prepaid expenses and deferred charges

  beginning of year $558,453,146 · end of year $133,451,426

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

  $1,771,484,801

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

  $1,472,428,505

• 10c · Land, buildings and equipment, net

  beginning of year $307,874,913 · end of year $299,056,296

• 11 · Investments: publicly traded securities

  beginning of year $5,312,048,578 · end of year $6,548,573,539

• 12 · Investments: other securities

  beginning of year $875,353,229 · end of year $1,164,646,760

• 13 · Investments: program-related

  beginning of year $32,169,604 · end of year $33,759,067

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year $341,546,789 · end of year $357,375,297

• 17 · Accounts payable and accrued expenses

  beginning of year $786,079,509 · end of year $841,354,031

• 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 $0 · end of year $0

• 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 $2,534,776,670 · end of year $3,429,812,269

• 27 · Net assets without donor restrictions

  beginning of year $4,084,786,761 · end of year $4,337,280,957

• 28 · Net assets with donor restrictions

  beginning of year $8,225,813 · end of year $11,624,281

The filer's explanations (Part III)

SCHEDULE J, PART I, LINE 1A

RELEVANT INFORMATION REGARDING COMPENSATION ITEMS: FIRST-CLASS TRAVEL: CERTAIN OFFICERS, BOARD MEMBERS AND KEY EMPLOYEES OF SUTTER HEALTH MAY UPGRADE TO FIRST-CLASS TRAVEL AS BUSINESS NEED DICTATES. UPGRADES ARE CONSIDERED A NECESSARY BUSINESS EXPENSE. SPOUSAL TRAVEL: FOR BOARD MEMBERS, ON CERTAIN OCCASIONS DETERMINED BY THE BOARD CHAIR, A SPOUSE MAY ACCOMPANY THE BOARD MEMBER TO A BOARD FUNCTION. TAXABLE SPOUSAL TRAVEL EXPENSES WILL BE REPORTED AS INCOME ON A FORM W-2 OR 1099 AS APPROPRIATE. SOCIAL CLUB: THE CEO RECEIVES A PAID MEMBERSHIP TO A LOCAL SOCIAL CLUB FOR BUSINESS AND COMMUNITY OUTREACH PURPOSES.

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

SEVERANCE PAYMENTS: JAMES CONFORTI RECEIVED SEVERANCE PAYMENTS OF $1,599,998. BRIAN DEAN RECEIVED SEVERANCE PAYMENTS OF $255,081. FLO DI BENEDETTO RECEIVED SEVERANCE PAYMENTS OF $262,399. THERESA FREI RECEIVED SEVERANCE PAYMENTS OF $483,547. JEREMY EAVES RECEIVED SEVERANCE PAYMENTS OF $366,606. DAVID CHENEY RECEIVED SEVERANCE PAYMENTS OF $510,003. RISHI SIKKA RECEIVED SEVERANCE PAYMENTS OF $22,034.

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 12% of base salary plus annual incentive plan award (commensurate with management level). Contributions are also made for a small group of senior level executives whose estimated retirement benefit (social security plus qualified plan benefits plus 457f) falls below 50% - 65% of final 4-year average base salary when retiring at age 65 with 22.5 years of service. Target benefit levels are discounted for years of service less than 22.5 at age 65. 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.

• SUTTER OUTPATIENT SERVICES LLC

  SUPPORT SVCS · CA · income $92,847,011 · assets $15,195,590

  Directly controlled by SUTTER HLTH

• SUTTER SHARED LAB LLC

  LAB SERVICES · CA · income $61,365,086 · assets $51,915,386

  Directly controlled by SUTTER HLTH

• SUTTER HEALTH PLAN PRODUCTS ORG LLC

  SUPPORT SVCS · CA · income $0 · assets $67,508,154

  Directly controlled by SUTTER HLTH

• SUTTER PREF DIR CONTRACTING ENTITY LLC

  HLDNG COMPANY · CA · income $3,170,231 · assets $7,949,947

  Directly controlled by SUTTER HLTH

Related partnerships

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

• SURG CTR OF ABSMC

  N/A · Patient Care · CA

  Directly controlled by SUTTER BH

• CA PACIFIC ADV IMAG

  N/A · patient care · DE

  Directly controlled by SUTTER BH

• SF ENDOSCOPY CENTER

  RELATED · patient care · CA · 1.8% owned · share of income $701,736 · share of assets $64,311 · general or managing partner

  Directly controlled by SUTTER BH

• SUT FAIRFIELD SURG

  N/A · patient care · CA

  Directly controlled by SUTTER VMF

• SUT AMADOR SURG CTR

  RELATED · patient care · CA · 6.487% owned · share of income $65,595 · share of assets $59,626 · general or managing partner

  Directly controlled by SUTTER HLTH

• ROSEVILLE ENDOSCOPY

  N/A · patient care · CA

  Directly controlled by NA

• MEMORIAL MED BLDG

  N/A · OFFICE RENTAL · CA

  Directly controlled by SUTTER VH

• MAGNETIC IMAGING AF

  N/A · PATIENT CARE · CA

  Directly controlled by SUTTER BH

• ASC OPERATORS - SANTA ROSA LLC

  RELATED · care management · CA · 16% owned · share of income $2,398,000 · share of assets $2,386,801 · general or managing partner

  Directly controlled by SUTTER BMF

• ASC OPERATORS - SAN LUIS OBISPO LLC

  RELATED · care management · CA · 51% owned · share of income $3,319,599 · share of assets $3,803,286 · general or managing partner

  Directly controlled by SUTTER HLTH

• WALNUT CK ENDOSCOPY

  N/A · patient care · CA

  Directly controlled by NA

• E BAY ENDOSCOPY CTR

  N/A · patient care · DE

  Directly controlled by NA

• ASC OPERATORS - SOUTH BAY LLC

  RELATED · care management · CA · 6% owned · share of income $847,466 · share of assets $224,528 · general or managing partner

  Directly controlled by SUTTER HLTH

• PENINSULA EYE SURG

  N/A · patient care · CA

  Directly controlled by NA

• PENINSULA ENDOSCOPY CENTER LLC

  RELATED · PATIENT CARE · CA · 6% owned · share of income $1,192,248 · share of assets $423,605 · general or managing partner

  Directly controlled by SUTTER HLTH

• N BAY REG SURG CTR

  RELATED · patient care · CA · 6% owned · share of income $945,851 · share of assets $477,442 · general or managing partner

  Directly controlled by SUTTER HLTH

• ASC OPERATORS - SAN FRANCISCO LLC

  RELATED · care management · CA · 6% owned · share of income $860,261 · share of assets $154,974 · general or managing partner

  Directly controlled by SUTTER HLTH

• GG ENDOSCOPY CTR

  N/A · patient care · CA

  Directly controlled by NA

• ASC OPERATORS LLC

  RELATED · care management · CA · 55% owned · share of income $14,924,092 · share of assets $15,944,416 · general or managing partner

  Directly controlled by SUTTER HLTH

• SB ENDOSCOPY CTR

  N/A · patient care · CA

  Directly controlled by NA

• SAN LUIS OB SUR CTR

  N/A · patient care · CA

  Directly controlled by NA

• REDDING SURG CTR

  N/A · patient care · CA

  Directly controlled by NA

• CARLSBAD SURG CTR

  RELATED · patient care · CA · 54.391% owned · share of income $2,158,599 · share of assets $2,363,860 · general or managing partner

  Directly controlled by SUTTER HLTH

• S PLACER SURG CTR

  N/A · patient care · CA · 51% owned

  Directly controlled by SUTTER HLTH

• SAC SURG CTR ASSOC

  N/A · patient care · CA · 51% owned

  Directly controlled by SUTTER HLTH

• FORT SUT SURG CTR

  N/A · patient care · CA · 51% owned

  Directly controlled by SUTTER HLTH

• SUT ALHAMBRA SURG

  N/A · patient care · CA · 51% owned

  Directly controlled by SUTTER HLTH

• AUBURN SURG CTR LP

  RELATED · patient care · CA · 15.428% owned · share of income $143,609 · share of assets $413,626 · general or managing partner

  Directly controlled by SUTTER HLTH

• ICG CREDIT OPP FUND

  N/A · INVESTMENTS · DE · 53.25% owned · share of income $1,560,431 · share of assets $43,854,074

  Directly controlled by SUTTER HLTH

• ASC OPRTS-EAST BAY

  RELATED · CARE MANAGEME · CA · 6% owned · share of income $845,697 · share of assets $200,299 · general or managing partner

  Directly controlled by SUTTER HLTH

• EHC SURGERY CENTER

  RELATED · PATIENT CARE · CA · 6.4% owned · share of income $69,611 · share of assets $429,636 · general or managing partner

  Directly controlled by SUTTER HLTH

• DIVISADERO HOLD LLC

  N/A · Outpatient SURG · CA

  Directly controlled by SUTTER BH

• D E SHAW ALL COUNTRY GLOBAL ALPHA PLUS

  N/A · INVESTMENT · DE

  Directly controlled by NA

• ICG CREDIT OPPORTUNITIES FUND 1A LP

  N/A · Investment · DE

  Directly controlled by NA

• ICG CREDIT OPPORTUNITIES FUND 2A LP

  N/A · Investment · DE

  Directly controlled by NA

• MAKENA REAL ESTATE II LP

  N/A · Investment · CJ

  Directly controlled by NA

• D E SHAW ALL COUNTRY GLOBAL ALPHA LL

  N/A · Investment · DE · 99.999% owned · share of income $37,552,256 · share of assets $376,565,180

  Directly controlled by SUTTER HLTH

• ICG SPECIAL OPPORTUNITIES FUND I LP

  N/A · Investment · DE · 98.93% owned · share of income $301,133 · share of assets $5,287,788

  Directly controlled by SUTTER HLTH

• TAP CMDITYBLDR FUND

  N/A · INVESTMENT · NY · 85.87% owned · share of income -$15,561,754 · share of assets $233,240,641

  Directly controlled by SUTTER HLTH

• MAKENA STRATEGIC OPPORTUNITIES FUND - SH

  N/A · INVESTMENT · DE · 100% owned · share of income -$2,604,425 · share of assets $122,680,967 · general or managing partner

  Directly controlled by SUTTER HLTH

• SAN LEANDRO SURGERY CENTER

  N/A · PATIENT CARE · CA

  Directly controlled by SUTTER HLTH

• SANTA ROSA SURGERY CENTER

  N/A · PATIENT CARE · 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 · 100% owned · controlled entity

  Directly controlled by SUTTER HLTH

• NORTHWOOD EUROPE TE FEEDER LP

  C CORP · HOLDING COMPANY · CJ · 100% owned · controlled entity

  Directly controlled by SUTTER HLTH

• HEALTH VENTURES INC

  C CORP · HEALTH SERVICES · CA · controlled entity

  Directly controlled by SUTTER BH

• WilSOP Segregated Portfolio 1

  C corp · INVESTMENT · CJ · 76% owned · controlled entity

  Directly controlled by SUTTER HLTH

• WilSOP Segregated Portfolio 2

  c corp · INVESTMENT · CJ · 76% owned · controlled entity

  Directly controlled by SUTTER HLTH

• AQR REAL RETURN OFFSHORE FUND LP

  c corp · INVESTMENT · CJ · 0% owned · controlled entity

  Directly controlled by SUTTER HLTH

• BRIGADE LEVERAGED CAPITAL STRUCTURE OFFS

  C Corp · Investment · CJ · 53.75% owned · controlled entity

  Directly controlled by SUTTER HLTH

• AQR MULTI-STRATEGY FUND XXIII LP

  C CORP · INVESTMENT · CJ · 66% owned · controlled entity

  Directly controlled by SUTTER HLTH