Banner Health’s revenue, operating income and net income were up year over year in the first quarter of 2019, according to financial documents released May 16.
The Phoenix-based health system reported revenues of $2.3 billion in the first quarter of this year, up from $2.1 billion in the same period of 2018. Banner said the boost was attributable to growth in premium revenues, higher patient volumes and an increase in reimbursement rates from commercial health plans.
Operating expenses climbed 11 percent year over year to $2.2 billion in the first quarter of 2019. Banner said the increase was attributable to several factors, including the opening of a new patient tower and adding 110 new physicians at its campuses in Phoenix and Tucson, Ariz.
Banner ended the first quarter of 2019 with operating income of $87.4 million, up from $82.2 million in the first quarter of last year.
After factoring in nonoperating items, Banner reported net income of $327.5 million in the first quarter of this year. That’s more than three times higher than the net income of $94.6 million the health system recorded in the first quarter of 2018. The year-over-year increase was fueled by strong investment gains.
“Nonoperating income for the quarter reflected investment growth of over $270 million, bringing Banner’s investment portfolio to $4.9 billion, as strong corporate earnings and expected execution of US-Foreign trade agreements have sparked investment markets,” Banner said.
More articles on healthcare finance:
© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.