Banner Health, a 28-hospital nonprofit system based in Phoenix, saw revenues increase in the first half of 2018, but the system ended the period with lower operating income.
Banner's revenues climbed 5.9 percent year over year to $4.2 billion in the first six months of this year, according to recently released unaudited financial documents. The boost was attributable to higher patient revenue and growth in premium revenues from its insurance plans.
Higher expenses offset Banner's revenue gains in the first half of 2018. The system said expenses grew 7.9 percent year over year to $4.1 billion in the first six months of this year.
Banner ended the first half of 2018 with operating income of $127.3 million, down 33.3 percent from $190.7 million in the same period a year earlier.
After factoring in nonoperating income, which dropped 59.6 percent year over year to $84.7 million, Banner ended the first half of 2018 with net income of $198.2 million. That's down 48.8 percent from the first half of 2017, when the system posted net income of $386.8 million.
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