With steady jobs, plentiful insurance coverage, and high levels of payment reform and clinical integration, California’s capitol has long been a reliable market for health industry stakeholders. Providers are the most powerful drivers in the Sacramento healthcare market, where health systems are highly consolidated and operate tightly integrated networks of physicians. However, the rapid spread of COVID-19 has presented providers with new financial challenges. Sutter, one of the market’s biggest systems suffered $321 million in operations losses in 2020 due to a drop in patient service revenue and increased staffing costs amid. At the same time, California sued Sutter for anti-competitive practices and is being forced to change the way it contracts with insurers, leveling the playing field for rival systems. This could bring about a seismic shift in Sutter’s position as a dominant health system and UC Davis Health System could make gains.

Related Reports

Charleston | South Carolina | 2021 | Market Overview Brief

MUSC Health is the dominant health system in the market, leaving Trident Health and Roper St. Francis Healthcare to vie for the No. 2 spot. And for the moment, Trident Health has jumped ahead of RS...

View Details

Harrisburg | Pennsylvania | 2021 | Market Overview Brief

Pittsburgh-based ecosystems UPMC Health and Highmark Health continue to shape the Harrisburg market into another front in their statewide competition. UPMC Pinnacle leads the market’s hosp...

View Details

Cape Coral | Florida | 2021 | Market Overview Brief

Cape Coral health systems are the key drivers in this market and Lee Health and NCH Healthcare—which dominate Lee and Collier counties, respectively—have escalated their rivalry by open...

View Details

Birmingham | Alabama | 2021 | Market Overview Brief

Birmingham, a statewide hub for specialty care, has historically been a slow-moving market from the perspective of value-based contracting. BCBS of Alabama is the power player and key driver of qua...

View Details