Banner Health, a 32-hospital system based in Phoenix, posted an operating income in the first half of this year, largely aided by provider relief funds, according to recently released financial documents.
In the six-month period ending June 30, Banner Health posted an operating income of $179 million. Banner Health said the growth in operating income was aided by $102.6 million from provider relief recognized as revenue. In the same period last year, Banner Health had an operating income of $109 million after recognizing $209.9 million of provider relief funds.
The health system's revenue reached nearly $6 billion through the first six months of 2021, up from $4.9 billion recorded in the same period last year. Banner Health's expenses also rose more than $1 billion year-over-year, from $4.8 billion to $5.8 billion.
Banner Health attributed its revenue growth to federal aid, recovery of elective volume and an increase in Medicaid reimbursement for Arizona hospitals. It also attributed the growth to the acquisition of Casper-based Wyoming Medical Center and a new medical center.
After factoring in nonoperating gains of $530 million, Banner Health ended the first six months of 2021 with a net income of $671 million. In the same period last year, Banner had nonoperating losses totaling $359 million, resulting in a net loss of $267 million.
Read more here.