Banner operating income falls 42%; patient volume up — 5 key points

Phoenix-based Banner Health reported operating income of $107.6 million on $3.4 billion in revenue in the first half of 2015. That’s compared to operating income of $186 million on $2.7 billion in revenue during the same period a year ago.

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Here are five key points from Banner’s second-quarter financial statement.

1. Banner reported its expenses increased to $3.3 billion in the first half of this year, up from expenses of $2.5 billion in the same period of 2014.

2. In the first six months of 2015, Banner recorded operating expenses of approximately $9.8 million related to merger activity.

3. In February, Banner acquired Tucson-based University of Arizona Health Network. Banner also acquired 44-bed Payson (Ariz.) Regional Medical Center this year.

4. As of June 30, admissions at Banner’s facilities were up 8.3 percent year over year. The system also reported year-over-year increases in outpatient and emergency department visits.

5. Banner ended the first half of 2015 with a net surplus of $236.8 million, down from a net surplus of $227.5 million in the comparable period of last year.

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