Sutter Health Provides $5 Million to Help Keep Community Health Clinics’ Doors Open During State Budget Crisis

SACRAMENTO, Calif., July 24, 2008 - Sutter Health announced today that it will provide $5 million in loans to help community health clinics continue to provide patient care and stay afloat in the wake of California’s budget crisis. These funds will be used to offer direct financial support to more than 600 community clinics that are losing funding every day as a result of state budgetary cuts and delays in reaching a final annual state budget.

Delays in Medi-Cal reimbursements, which account for 40 to 50 percent of health clinic revenue, could result in cutting patient services, reducing clinic hours or even closing clinic doors.

“Sutter Health has a longstanding commitment to enhancing the health of communities throughout Northern California. Ensuring that patients are able to have continued access to care at community health clinics – even during this difficult budget – is central to our mission,” said Sutter Health President and CEO Patrick Fry.

In providing this innovative financing solution, Sutter Health is partnering with the California Primary Care Association, a trade organization representing more than 600 not-for-profit community clinics and health centers. Catholic Healthcare West has made similar loans through this program.

As one of the nation’s leading not-for-profit networks of community-based health care providers, Sutter prides itself on delivering high-quality care in more than 100 Northern California communities. During 2007, Sutter increased its investment in providing care and services for the poor and underserved and benefits for the broader community to $492 million.

Fry continued, “Earaches, asthma and diabetes won’t delay their symptoms while the state finalizes its budget. Sutter Health felt it was important that patients continue to get the care they need at clinics close to home. We are proud to be part of this effort.”

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Sutter Health Contacts

Karen Garner
(916) 286-8297
garnerk@sutterhealth.org

Brian Hudson
(916) 286-6680
cthudsb@sutterhealth.org

Sutter Health Media Line
(916) 286-6695