The net income increase was largely driven by strong investment gains, which totaled $653.4 million in 2021. In 2020, Banner’s saw investment income of $448.4 million.
The 28-hospital system’s revenue increased by 18.9 percent from $10.4 billion in 2020 to $12.4 billion in 2021.
Its expenses reached $12.2 billion for the 12 months ended Dec. 31, 2021, up from $10.1 billion in 2020, representing a 21.3 percent increase.
Banner’s operating income was $126.7 million in 2021, a 59.2 percent decrease from 2020 at $310.9 million. Its operating margin was 1 percent for 2021 and 3 percent for 2020.
The system attributed the decrease in operating income to challenges from the COVID-19 pandemic, particularly with the labor market. It used $136 million in provider relief fund dollars to offset external contract labor, mostly in the first half of the year. It took on $800 million in external contract labor costs in 2021, Banner said in the report.
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