Phoenix-based Banner Health saw its revenue, operating income and net income grow in the first nine months of 2021 when compared to the same period last year, according to its recently released financial report.
The 32-hospital system recorded revenue of $9 billion through the nine months ending Sept. 30, which is a 21 percent increase over the same period one year prior. Banner Health attributed the 2021 revenue growth to a rebound in elective procedures, recognition of $103 million in provider relief and the addition of Wyoming Medical Center in Casper and Banner Ocotillo Medical Center in Chandler, Ariz.
The health system also saw its expenses rise through the third quarter of 2021 to $8.9 billion, up from the $7.3 billion recorded in the same period one year before. Banner health said premium labor was $334 million higher than the prior year on a year-to-date basis.
"The strained labor market has driven contract labor rates to exorbitant levels, applying extreme cost pressure to operations beginning in late Q3," the health system said in the financial report.
Banner's operating income for the first nine months of 2021 was $164 million, up 6.5 percent from the same period one year before.
After factoring in $561 million in nonoperating gains, Banner Health ended the nine-month period ending Sept. 30 with a net income of $667 million. In the same period last year, Banner Health posted a $57 million net loss.