Banner Health's operating income drops 36% in Q1

Banner Health saw revenues increase in the first quarter of 2017, but the Phoenix-based system ended the period with lower operating income than in the same quarter of the year prior.

Banner reported revenues of $1.95 billion in the first quarter of this year, up about 1 percent from revenues of $1.93 billion in the same period of 2016, according to recently released bondholder documents.

However, higher expenses offset the system's revenue gains. Banner said its expenses grew 3 percent year over year to $1.88 billion in the first quarter of 2017.

Banner ended the first quarter of this year with operating income of $68 million, down 36 percent from $106.55 million in the same period of 2016.

The system said its Academic Medicine Division and unprofitable insurance operations took a toll on its finances. Banner said its Academic Medicine Division, which includes three medical centers and three physician practices, saw an overall net operating loss of $23.8 million in the first quarter of 2017, compared to a net loss of $16.6 million in the first quarter of the year prior.

More articles on healthcare finance:

Austin hospital closes after 133 years; relocates services
Erlanger expects to top $1B in revenues for the first time in 2019
California hospital at risk of losing Medicare, Medicaid funding

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars