Banner Health's net income plunges 55% in Q1

Banner Health, a 28-hospital nonprofit system based in Phoenix, saw its operating income rise in the first quarter of 2018, but the system's net income plummeted year over year.

Banner's revenues climbed 7.3 percent year over year to $2.1 billion in the first quarter of 2018, according to recently released bondholder documents. The system said the financial boost was attributable to higher patient volume and reimbursement rates, as well as growth in premium revenues from its insurance plans.

Higher expenses offset some of Banner's revenue gains in the first quarter of this year. The system said expenses grew 6.9 percent year over to $2.01 billion in the first quarter of 2018.

Banner ended the first quarter of this year with operating income of $82.2 million, up from $68.6 million in the same period a year earlier.

After factoring in nonoperating income, which dropped 87 percent year over year to $19.6 million, Banner ended the first quarter of 2018 with net income of $94.6 million. That's down 55 percent from the first quarter of 2017, when the system posted net income of $208.4 million.

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