About Banner Health  

Financial Stewardship

 

Banner Health's Financial Performance in Perspective

Banner Health is a nonprofit health system that exists to "make a difference in people's lives through excellent patient care." As a nonprofit organization, we exist to support our charitable mission of providing excellent health care services to the communities we serve, rather than to generate income for investors or stockholders.

Banner Health leaders embrace stewardship as a guiding philosophy of their respective management roles and understand it is necessary -- especially during economically challenging periods -- to generate “income’’ (shown on our financial statements as “Excess of Revenue over Expenses’’) as an essential ingredient to our continued ability to provide excellent patient care.

In fact, Banner can only obtain the capital needed to maintain and improve our existing equipment and facilities to meet the growing needs of the communities we serve through three channels:

  • By generating income 
  • By borrowing funds
  • Philanthropic donations

All options require that Banner operate with positive net income. A fourth option available to most businesses — finding stockholders willing to invest — is not available because, as a nonprofit, Banner has no stockholders or investor owners.

Under normal circumstances, the primary need for new capital in a health care organization like Banner is the improvement and maintenance of existing facilities and equipment. At Banner, we are pushing the envelope beyond maintenance and investing in emerging technology and innovation to give our caregivers the best tools available to provide excellent patient care. Examples of these investments are:

Banner's financial performance continues to be strong and we're confident that we'll be able to continue our ability to serve our communities. Our financial stewardship is improving for several reasons, including: 

  1. Banner is the leading provider of health care services in the communities we serve and more people choose Banner for their care
  2. Our streamlined management structure allows us to quickly spread innovation and share best practices across our system
  3. We leverage our size to reduce supply and equipment costs and to operate more efficiently.

We're also aggressively pursuing best practices both inside and outside of Banner for opportunities to reduce waste and inefficiency.

In summary, it is useful to keep the following in mind when reviewing Banner's financial results:

  • Banner’s net income is used only for reinvestment in itself, in innovative approaches, new facilities and for improvements in existing facilities. Not a single penny of Banner’s “profit” goes to benefit an investor or stockholder…because we don’t have any investors or stockholders. 
  • Banner's financial performance is strong and comes from attention to cost savings and efficiency as well as revenue growth.
  • Banner's financial performance is a major contributor to our ability to provide excellent patient care … allowing us to hire and retain the best people … and provide them with the best medical equipment and technology … so they can make a difference in the lives of the people we serve.

Banner Health 2013 Financial Report 

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