Six things to know:
1. Banner reported $15.6 billion in revenue for the 12 months ended Dec. 31, up from $14.1 billion during the same period last year.
2. The health system recorded total operating expenses of $15.2 billion in 2024, up from $13.8 billion in 2023. Banner’s contract labor costs decreased 30.9% year over year, which officials attributed to a combination of lower rates and reduced utilization. Supply costs increased 11.9% year over year to $2.5 billion, driven by higher volume, particularly in complex surgeries and chemotherapy/infusion drug treatments.
3. Banner’s insurance business recorded an operating loss of $205 million in 2024, a decline of $265 million from 2023. Officials said all lines of coverage underperformed, but about 70% of the year-over-year decline was attributable to Banner’s wholly owned Medicare Advantage plan and its commercial insurance joint venture, Banner|Aetna. The individual marketplace plan within the joint venture saw significant growth in 2024 as a result of being the “benchmark” plan and was negatively affected by adverse claims experience.Banner’s Medicare Advantage plan was also affected by adverse claim experience.
4. Banner said it is continuing to focus on growing its insurance business across commercial, Medicare and Medicaid products. The insurance business represented 25.4% of Banner’s overall operating revenue in 2024.
5. The system had 215 days of cash on hand as of Dec. 31, down from 225 on the same date in 2023. As of Dec. 31, Banner had long-term debt of $4.2 billion, down from $4.4 billion on the same date in 2023.
6. Banner reported a net income of $1.1 billion in 2024, up from $895 million in 2023.
