Banner's operating income sinks 37% in first 9 months of 2018

Banner Health, a 28-hospital nonprofit system based in Phoenix, saw revenues increase in the first nine months of 2018, but the system ended the period with lower operating income.

Here are four things to know:

1. Banner's revenues climbed 7.2 percent year over year to $6.3 billion in the first nine months of this year, according to unaudited financial documents released Nov. 28.

2. Higher expenses offset Banner's revenue gains. Banner said expenses grew 8.7 percent year over year to $6.1 billion in the first nine months of this year.

3. Banner ended the first nine months of 2018 with operating income of $122.1 million, down 37 percent from $192.9 million in the same period a year earlier.

4. After factoring in nonoperating income, which dropped 46 percent year over year, Banner ended the first nine months of 2018 with net income of $278.3 million. That's down 44 percent from the first nine months of 2017, when the system posted net income of $500.4 million.

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