Banner Health saw revenues increase in the first quarter of 2017, but the Phoenix-based system ended the period with lower operating income than in the same quarter of the year prior.
Banner reported revenues of $1.95 billion in the first quarter of this year, up about 1 percent from revenues of $1.93 billion in the same period of 2016, according to recently released bondholder documents.
However, higher expenses offset the system's revenue gains. Banner said its expenses grew 3 percent year over year to $1.88 billion in the first quarter of 2017.
Banner ended the first quarter of this year with operating income of $68 million, down 36 percent from $106.55 million in the same period of 2016.
The system said its Academic Medicine Division and unprofitable insurance operations took a toll on its finances. Banner said its Academic Medicine Division, which includes three medical centers and three physician practices, saw an overall net operating loss of $23.8 million in the first quarter of 2017, compared to a net loss of $16.6 million in the first quarter of the year prior.
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