Banner Health’s revenue increased year over year in the first six months of 2020, but the Phoenix-based system ended the period with a net loss.
Banner Health reported revenue of $4.8 billion in the first two quarters of this year, up from $4.7 billion in the same period last year, according to unaudited financial documents released Aug. 13. The increase was due in part to $210 million in funds Banner received through the Coronavirus Aid, Relief and Economic Security Act and the health system’s business model.
“Banner’s model of integration — from payer to provider — is a natural ‘hedge’ against fee-for-service disruptions in our industry, and has allowed Banner to outperform financial expectations even during the late COVID-19 surge experienced in Arizona,” reads a slide in Banner’s investor presentation.
After factoring in a 2 percent year-over-year increase in expenses, Banner ended the first half of this year with operating income of $109 million. That’s compared to the first six months of 2019, when the health system posted operating income of $111.8 million.
Banner reported a $359.4 million nonoperating loss in the first half of this year, and ended the period with a net loss of $267.2 million. In the same period last year, the system posted a nonoperating gain of $444.6 million and net income of $430.9 million.
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