Banner Health’s annual net income soars on investment gains

Phoenix-based Banner Health saw its net income climb from $44 million in 2018 to $726.8 million in 2019 due to strong investment gains, according to recently released financial documents. 

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“Investment returns were robust in 2019, resulting in $641.1 million of realized and unrealized gains,” Banner Health reported. 

The health system’s total revenue climbed to $9.4 million in 2019, up 10.6 percent from the $8.5 million posted in 2018.

The revenue growth was attributed to a 7 percent growth in care delivery revenue and a 29 percent increase in revenue from its insurance division.

Expenses also rose year over year. In 2019, Banner reported $9.2 billion in expenses; in 2018, it recorded $8.3 billion in expenses. 

The system’s operating income reached $200.4 million in the year ended Dec. 31, 2019, an increase from the $186.3 million reported in the same period one year prior. 

Overall, the health system’s margin in 2019 was 7.3 percent, a significant jump from the 0.5 percent margin in 2018. 

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