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.
More articles on healthcare finance:
Austin hospital closes after 133 years; relocates services
Erlanger expects to top $1B in revenues for the first time in 2019
California hospital at risk of losing Medicare, Medicaid funding
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
