Banner Health's revenue hits $7B in first 3 quarters of 2019

Banner Health's revenue was up year over year in the first nine months of 2019, but the Phoenix-based health system's operating income declined, according to unaudited financial documents.

Banner Health reported revenues of $7 billion in the first three quarters of this year, up from $6.3 billion in the same period of 2018. Banner said the 12.2 percent boost was driven by growth in premium revenues from its insurance division coupled with increases in patient volumes and commercial reimbursement rates.

Operating expenses climbed 12.5 percent year over year to $6.9 billion in the first nine months of this year. Banner said the increase was attributable to several factors, including opening new patient towers at its campuses in Phoenix and Tucson, Ariz.

Banner ended the first three quarters of 2019 with operating income of $116.5 million, down from $122.1 million in the same period of 2018.

After factoring in nonoperating items, Banner reported net income of $393.3 million in the first nine months of this year, up from $278.3 million in the same period a year earlier. The year-over-year increase was fueled by investment income.

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