Banner Health, the 24-hospital, Phoenix-based system that recently completed its acquisition of the University of Arizona Health Network, reported a higher operating surplus for 2014 as its payer mix improved and revenue grew 5.9%.
However, it also saw higher expenses almost across the board. Its operating margin dipped to 4.9% for the year ended Dec. 31, down from 5% in 2013.
Banner reported an operating surplus of $263.3 million on $5.4 billion in revenue for 2014, compared with a 2013 operating surplus of $254.1 million on $5.1 billion in revenue.
The system did not disclose patient-volume statistics, but it did note that Medicaid grew to represent 11.5% of its patient service revenue, up from 9.1% in 2013. Revenue from self-pay patients represented only 5% of the total, down from 8.6% the prior year, while the share from commercial insurers remained steady.
