Banner Health operating income plummets 51.2%

Banner Health reported an increase in revenue in 2015, but rising expenses and a loss on its accountable care organization caused the Phoenix-based system's bottom line to dip.

Banner reported revenues of nearly $7 billion in 2015, up from $5.4 billion the year prior

The system's financial boost was partially offset by rising expenses. Banner posted expenses of $6.8 billion in 2015, up 33.3 percent from $5.1 billion in 2014.

Banner ended 2015 with operating income of $128.4 million, down significantly from $263.3 million the year prior.

Banner Health Network, the system's ACO, recorded an operating loss of $49.3 million in 2015, down from operating income of $7.2 million in 2014. Banner officials said the decline was attributable to several factors, including significant out-of-network utilizations and losses on the BHN full risk contract with MediSun/Blue Advantage plan.

Banner recorded net income of $83.7 million in 2015, down from net income of $238.5 million in 2014.

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