Phoenix-based Banner Health reported higher revenue and operating income in the second quarter of this year than in the same period of 2016, according to recently released bondholder documents.
Banner continues to experience strong revenue growth, as revenue increased 9.4 percent from the second quarter of 2016 to the second quarter of this year. The system's revenue was also up year over year in the first quarter of 2017.
The revenue growth is largely attributable to higher patient volume. Banner said acute and observation cases increased year over year by 3.3 percent in the second quarter and emergency room cases grew 1.6 percent.
However, revenue growth was partially offset by the system's unprofitable insurance operations. Banner's insurance business generated an operating loss of $19.9 million in the second quarter of this year, compared to operating income of $1.2 million in the same period of 2016. Banner said the decline in operating performance is mostly due to increased losses on its Medicare Advantage plans.
Banner ended the second quarter of this year with operating income of $121.5 million, up from $93.5 million in the same quarter of 2016.
After factoring in strong investment gains, the system reported net income of $178.4 million in the second quarter of 2017, compared to net income of $138.2 million in the second quarter of last year.
More articles on healthcare finance:
MD Anderson operating in the black for first time in more than a year
For-profit hospital operators likely to experience weak patient admissions through 2018
Augusta University Health System blames lack of physicians for $8.8M loss