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Sutter Health to slash $700M in costs by 2014: Prep for tough times
San Francisco Business Times

In a letter to 50,000 Northern California staffers, Sutter Health CEO Pat Fry said the 24-hospital system needs to “achieve about $700 million in additional savings by 2014,” on top of roughly $37 million in savings gained by cutting infection rates. Fry warned Sutter workers that federal health reform will likely cut the system’s Medicare reimbursement by nearly $2 billion over the next decade, and that the state of California will likely slash Medi-Cal payments to doctors and hospitals as it deals with its own fiscal crisis.