Phoenix-based Banner Health, a 33-hospital system, transformed a $46 million operating loss in the same period last year into a $128 million gain in the quarter ending March 31.
The operating profit was on revenue of $3.5 billion and, with a boost from non-operating income, the system posted overall net income of $292 million for the first quarter compared with a $171 million loss in the same period of 2022.
Operating expenses, though slightly higher than in 2022, were helped by a reduction in contract labor costs of $57 million, or 26 percent.
"Management remains vigorously focused on recovery of its core business and realignment of staffing practices and labor costs," the filing noted.
Banner Health's days of cash on hand were 225 as of March 31, up from 218 in 2022 but still down on 2021 levels.