Phoenix-based Banner Health reported operating income of $16.6 million for the year ending Dec. 31 — its third straight year of positive income — amid a reduction in contract labor costs.
The operating figure was down on the two previous years but was significantly boosted by a $210 million reduction in contract labor costs, a 26.2 percent decrease from 2021.
Net income was heavily affected by investment losses so that the 32-hospital system reported an overall loss of $447 million compared with a net gain of $750 million in 2021.
The impact of the reduction in labor costs was seen particularly in the final three months of the year, Banner said.
"After five consecutive quarters of operating losses, the fourth quarter of 2022 represented a sharp improvement in performance driven by increases in several key volume indicators as well as progress being made to rebuild core nursing staff," management said.
Revenue for the year totaled $12.7 billion while days of cash on hand was 218.