2023 Annual Report

At the same time, major players in retail and tech have begun delivering care directly to patients and are using AI and other digital tools to change care models. These disruptors aren’t the only new players in healthcare delivery: Large insurance companies are now employing physicians and other healthcare providers in markets across the country.

These changes have created a tectonic shift in the delivery of healthcare in the U.S. As patients’ options and expectations change at an increasingly rapid pace, health systems either transform to meet their needs or face being left behind.

Sutter Health is committed to leading in this new era of healthcare, and in 2023, we embarked on an exciting new chapter for our organization to do that. One that will build upon our century-long legacy of caring for our communities and position us to meet these challenges and thrive in today’s evolving environment.

We started by establishing a clear aspiration and strategy. Destination 2030 is our proactive roadmap to the future. It outlines how we will become a leader in the way we serve our patients, our people, our physicians, our communities, and our organizational health.

As a critical first step toward achieving our ambitious goals, in 2023, we redefined how Sutter operates and the way we deliver care. Our new organizational and market structures better align our leadership roles with our strategic priorities, elevate the voices and roles of physicians, and help us better serve our patients where they live, work and access care. The initial progress and momentum enable Sutter Health teams to work better together, coordinate and advance patient care, and keep making a difference for our patients and communities.

Expanding Access to Care

Access to high-quality healthcare is one of the toughest and most significant healthcare issues facing California and the nation. In response, Sutter Health has made several meaningful investments to grow and serve more people.

We’ve launched an $800 million, multi-year ambulatory growth plan to build 25 more care centers across Northern California and added Central Coast-based Sansum Clinic to our integrated system of healthcare. We’re also making digital engagement and enablement a priority at Sutter Health. The foundational work we did in 2023 to simplify, streamline and upgrade our connective technologies will allow us to make it more convenient for our patients to access care and for our people to deliver it.

Training the Next Generations of Physicians and Clinicians

Another way we’re extending our impact is by accelerating our physician and clinician recruitment and by expanding our 20 nationally accredited graduate medical education (GME) and other clinical training programs. We hired 732 physicians and advanced practice clinicians in 2023, and plan to train and graduate approximately 1,000 residents and fellows by 2030.

Advancing Health Equity, Care Quality and Innovation

Sutter Health physicians, clinicians and hospitals routinely earn national recognition for the care they deliver, but our dedication to getting better never stops. We continue to raise the bar and relentlessly focus on improving health outcomes for our patients and communities.

We’re also focused on driving health equity solutions within our system and across the country. In addition to the investments we’re making in the Sutter Institute for Advancing Health Equity, we’ve launched the nation’s first Doctor of Nursing Practice Fellowship, which aims to help reduce health disparities by developing the next generation of health equity-focused nurses. And we’re opening a major Innovation Center in San Francisco that will push the frontier of what's possible in healthcare.

While we’re exceptionally proud of Sutter’s leadership and progress in these areas, we also know that we can’t do this alone. Our partnerships with state and community leaders and organizations are crucial to improving health outcomes for all Californians. This includes Sutter’s generous donors. We raised our highest-ever philanthropic funds in 2023, and we want to thank our donors for their ongoing belief in Sutter Health. Your support enables us to fund increased access, new care innovations and more.

Investing in Our People

Our people are the secret sauce of Sutter Health—they are the most critical component of our ongoing progress and success. So, increasing the energy, optimism and connection among our teams is a huge priority for us. Infusing Diversity, Equity and Inclusion into every facet of our organization is also a major focus. We launched comprehensive plans for both of these important areas in 2023 and made significant progress that will fuel our advancements into the future.

Looking Ahead

We view it as our responsibility to tackle some of the biggest challenges in healthcare like workforce development, physician shortages, access to care and mental health. We did this in 2023 and it will continue to be part of our roadmap going forward. Looking ahead, we also want to cultivate academic partnerships for disciplines in healthcare beyond physicians to further build our capabilities.

As you will see in our 2023 Annual Report, we have great momentum built through our significant number of accomplishments this past year. And we’re confident that we’re going to do even more in 2024 and beyond to make healthcare better and more accessible and equitable in California, and to make Sutter Health the place people want to work and practice medicine, and where patients want to receive their care.

Warm Regards,

Ken McNeely
Board Chair

Warner Thomas
President and Chief Executive Officer

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