Banner Health posted $586.7 million in income in 2020, a 19% drop from its earnings of $726.8 million in 2019 due to increased costs associated with the COVID-19 pandemic, its latest audited financial statement shows.
Like many health systems across the industry, Phoenix-based Banner reported it was impacted by reduced inpatient volumes and operating revenues at outpatient facilities as elective procedures were deferred and patients avoided medical treatment.
Banner reported its revenue increased to $10.4 billion in 2020, an 11% increase over the $9.4 billion it posted in 2019. That was, in part, due to the $452 million Banner received in COVID-19 relief funds as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress last year.
Banner also received $654 million in Medicare accelerated payments. The advance payments will begin being recouped in April.
The health system saw an uptick across the board in costs for its supplies, workforce and purchased services. Its expenses reached $10.1 billion, up 9% from $9.3 billion a year earlier.