Banner Health

EIN: 450233470 501(c)(3) Health Care

PHOENIX, AZ

Total Revenue
$9,479,573,911
Total Expenses
$8,672,348,619
Total Assets
$15,047,925,041
Net Assets
$7,827,547,998
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Financial Trends

Organization Details

Formation Year
1938
Legal Domicile
AZ
Phone
6027474000
Tax Period
2023-01-01 to 2023-12-31

Banner Health, founded in 1938, is a large national nonprofit in the Health Care sector that reported $9.5B in total revenue in fiscal year 2023. Revenue grew 12% year-over-year, indicating healthy expansion. Expenses of $8.7B left a modest 9% surplus.

Mission

BANNER HEALTH'S NONPROFIT MISSION IS "MAKING HEALTH CARE EASIER, SO LIFE CAN BE BETTER".

Program Service Accomplishments

Program 1
Expenses: $7,875,624,361 Revenue: $9,131,679,003

Headquartered in Phoenix, Arizona, Banner Health is one of the largest nonprofit health care systems in the country. In addition to thirty-one acute-care hospitals and three rehabilitation hospitals...

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Headquartered in Phoenix, Arizona, Banner Health is one of the largest nonprofit health care systems in the country. In addition to thirty-one acute-care hospitals and three rehabilitation hospitals, Banner Health also operates an academic medicine division, Banner - University Medicine, and Banner MD Anderson Cancer Center, a partnership with one of the world's leading cancer programs, MD Anderson Cancer Center. Banner Health's array of services includes health insurance, employed physician groups, outpatient surgery centers, urgent care, home care and hospice, retail pharmacies, imaging centers, physical therapy and rehabilitation, behavioral health, telehealth, global research, and a nursing registry. Guided by and deeply committed to our nonprofit mission: "Making health care easier, so life can be better," Banner Health is the leading nonprofit provider of hospital services in all the communities served and, in some cases, the only inpatient/acute care facility available within the community. This mission serves as the cornerstone of operations at our facilities located in small and large, rural, and urban communities, spanning six western states and their incredibly diverse populations. Regarded and recognized as a top health system in the country for the clinical quality consistency, nonprofit Banner Health has evolved from a health system of hospitals to a fully integrated system including significantly expanded services through Medical Group and Insurance Divisions. The comprehensive, integrated services provided by Banner Health include acute care, ambulatory care, long-term care, home health care, urgent care, medical imaging, rehabilitation, telemedicine, and hospice and palliative care. In addition to providing major, accredited medical education programs that train qualified physicians, Banner Health participates in national and international research efforts. Banner Health has not only demonstrated the ability to effectively manage the health and wellness of those in our service areas but has expanded convenient access to quality care throughout the communities served. Formed to accelerate Banner Health into the future the Banner Health Innovation Group (BIG) identifies, creates, and implements solutions that introduce and connect emerging ideas in health care. BIG takes a practical, people-first approach to innovation to achieve our vision of being our community's most trusted health partner; constantly evaluating how innovative solutions impact the quality, reliability, and value of the care Banner Health provides. The innovations arising from our staff and partners not only improve and simplify care, but also deepen the relationships between patients and clinicians, communities and institutions, and individuals and their own health. This holistic view prioritizes the interactions among the people that make health care possible, and we believe it is the key to a healthier future. By focusing on what patients, caregivers, and clinicians truly need, BIG aims to make health care better and more accessible for everyone. Through partnerships, human-centered design principles, and collaborative ventures with other health innovators, BIG builds a future where health care is more than a service delivered at a point in time - it is a boundless resource that helps people build a capability for wellness and foundation for a thriving life. BIG delivers results to make that future a reality, developing fresh ideas and cultivating strong partners to make health care easier so life can be better. Banner Health is dedicated to strengthening patient care through a continuous focus on improving patient outcomes and service, development and training of an engaged workforce, use of innovative technologies, and expansion of our facilities and services to meet community needs. At Banner Health people have always come first and whether welcoming newborns, or providing care for thriving in later years, our patients provide the motivation that keeps us moving forward. At all stages in life, Banner Health meets the health and medical needs of its patients through compassionate professionals and outstanding service. Banner Health's reach provides patients with access to these services be it from a hospital bed, mobile web site, virtual telehealth space, or physical presence in a Banner Health clinic or physician's office. Banner Health meets the patient where they are and at their desired locale. Banner Health's mission is "Making health care easier, so life can be better as a nonprofit organization, we exist to support our charitable mission of providing excellent health care services to the communities we serve, rather than generating income for investors or stockholders. Every dollar we earn is reinvested into new equipment, new or expanding patient care services, new physician services, modern technologies, maintaining existing equipment and facilities, and employees' salaries in addition to subsidizing the medical education costs for hundreds of physicians in training. To fulfill our mission and serve our incredibly diverse patient population, Banner Health operates a system of rural and urban facilities that preserve the dignity of everyone regardless of race, creed, sex, sexual orientation, gender identity, age, social status, or ability to pay for services rendered. Banner Health facilities are operated in a cost-effective and financially responsible manner to ensure that all who turn to Banner Health receive the excellent patient care they deserve. We leverage our size to reduce supply and equipment costs and to operate more efficiently and aggressively pursue best practices both inside and outside of Banner Health for opportunities to reduce waste and inefficiency. Banner Health values and celebrates equity, diversity and inclusion. We promote and cultivate a culturally rich workforce that is honored to serve, support and provide services to our diverse communities. We respect and value the various backgrounds and differences among our team members that allows them to be who they are. We believe leveraging these unique perspectives, experiences and talents not only enhances our Banner Health family, but supports our effectiveness and success as an organization. With approximately 58,000 employees, Banner Health is the largest private employer in Arizona, third largest employer in the Northern Colorado front range area, and Banner Health is the leading nonprofit employer in most other communities served by Banner Health in 2023. As a Banner Health team dedicated to our community and people, Banner Health recognitions and acknowledgements have included: * 100 Best Places to Work in Information Technology * Aetna Workplace Well-Being Making a Difference Award * American Heart Association Workplace Health Index Award, Silver Level * American Medical Association - "Joy in Medicine" * Arizona Corporate Counsel Lifetime Achievement * Arizona Veteran Supportive Employs Award * AzPHA Public Health Awards * Becker's Hospital Review "36 ACOs To Know" * Becker's Hospital Review "Best Places to Work" * Becker's Hospital Review "Great Healthcare Leaders to Know - CEO" * Copper Anvil Awards - Crisis, Integrated and External Communications * Denver Business Journal Healthiest Employers * Excellence in Health Care Facility Management Awards * Healthcare Information and Management Systems Society Changemaker in Health * Healthcare Leader for Older Adults * Healthcare Purchasing Supply Chain Department of the Year * Healthiest Arizona Workplace Program Award * Integrity Summit Integrity Tiger Awards * Larimer County - Outstanding Employer * Lown Institute - Most Socially Responsible Hospitals in America - A Grade in Health Equity, Value and Patient Outcomes * Magnet Recognition - Nursing Excellence * Medicare Shared Savings Program (MSSP) ACOs * Modern Healthcare's Top Diversity Leaders in Healthcare * Modern Healthcare's 100 Most Influential People in Healthcare * Modern Healthcare's 50 Most Influential Clinical Executives * Modern Healthcare's Top 25 Women leaders * Newsweek - Best Maternity Hospital * Pacific Southwest Minority Supplier Development Council Corporate Spend Award * Pacific Southwest Minority Supplier Development Council Corporate and Regional MBE Spend Award * Phoenix Business Journal Healthcare Heroes Community Outreach Award * Phoenix Business Journal Healthcare Heroes Lifetime Achievement Award * Phoenix Business Journal Healthiest Employers * PRSA Phoenix Communications Team of the Year * Salt River Project Champions of Energy Efficiency Awards * SDI and Modern Healthcare Magazine Top 10 Integrated Health Systems * Top 10 Diversity Action Award * Top 10 Strategic or Enterprise-Wide ERG Award * Top 25 ERGs & Diversity Councils Award * Tourette Association of America (TAA) Center of Excellence * Truven Analytics - Top 5 Large Health System * World's Best Intranet

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Trantor Score

Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

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Financial Overview (2023)

Revenue Breakdown

Contributions & Grants $101,040,803
Program Service Revenue $9,131,679,003
Investment Income $241,076,829
Other Revenue $5,777,276
TOTAL REVENUE $9,479,573,911

Expense Breakdown

Grants Paid $31,275,339
Salaries & Benefits $4,282,887,033
Fundraising Expenses $0
Program Expenses $7,875,624,361
Other Expenses $4,358,186,247
TOTAL EXPENSES $8,672,348,619

Year-over-Year Comparison

2023 2022 Change
Revenue $9,479,573,911 $8,495,325,836 +0.1%
Expenses $8,672,348,619 $8,128,108,942 +0.1%
Net Income $807,225,292 $367,216,894 +1.2%
Key Indicators
Grants to Organizations Grants to Individuals Lobbying Political Activity Foreign Activities Donor Advised Fund Schedule B Required
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Governance

Voting Members
14
Independent Members
13
Employees
51932
Volunteers
3352

Governance Policies

Conflict of Interest Policy
Whistleblower Policy
Document Retention Policy

Special Practices & Reported Activities

Operated a School
Operated a Hospital
Provided First Class Travel
Reported Conflict of Interest
Reported Asset Diversion
Excess Benefit Transaction
Made Political Expenditures
Engaged in Lobbying
Operated Donor Advised Fund
Maintained Art Collections
Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers
12
$33,171,633
Total Directors
16
$15,230,876
Key Employees
7
$9,918,965
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
N/A DIRECTOR/VICE-CHAIR 6.0
Officer Director
$107,500 $0 $107,500
N/A CHIEF EXECUTIVE OFFICER 40.0
Officer Director
$8,178,948 $5,852,428 $14,031,376
N/A DIRECTOR/CHAIRMAN 6.0
Officer Director
$111,500 $0 $111,500
N/A DIRECTOR 4.0
Director
$99,000 $0 $99,000
N/A DIRECTOR 4.0
Director
$91,000 $0 $91,000
N/A DIRECTOR 4.0
Director
$43,500 $0 $43,500
N/A DIRECTOR 4.0
Director
$99,000 $0 $99,000
N/A DIRECTOR 4.0
Director
$95,000 $0 $95,000
N/A DIRECTOR (THRU 06/2023) 4.0
Director
$43,500 $0 $43,500
N/A DIRECTOR 4.0
Director
$91,000 $0 $91,000
N/A DIRECTOR 4.0
Director
$91,000 $0 $91,000
N/A DIRECTOR 4.0
Director
$43,500 $0 $43,500
N/A DIRECTOR 4.0
Director
$43,500 $0 $43,500
N/A DIRECTOR (THRU 06/2023) 4.0
Director
$47,500 $0 $47,500
N/A DIRECTOR 4.0
Director
$91,000 $0 $91,000
N/A DIRECTOR 4.0
Director
$102,000 $0 $102,000
N/A PRESIDENT 40.0
Officer
$3,808,610 $1,828,722 $5,637,332
N/A VP, CHIEF INVESTMENT OFFICER 40.0
Officer
$678,427 $155,292 $833,719
N/A EVP, CHIEF FINANCIAL OFFICER (THRU 03/2023) 40.0
Officer
$1,944,940 $11,219 $1,956,159
N/A EVP, CHIEF STRATEGY & GROWTH OFFICER 40.0
Officer
$1,817,866 $873,358 $2,691,224
N/A DIRECTOR LEGAL OPS & ASSISTANT SECRETARY 40.0
Officer
$153,045 $12,837 $165,882
N/A EVP, CHIEF LEGAL OFFICER & GENERAL COUNSEL 40.0
Officer
$1,087,861 $604,280 $1,692,141
N/A EVP, CHIEF HUMAN RESOURCES OFFICER 40.0
Officer
$1,078,262 $562,040 $1,640,302
N/A EVP, CHIEF CLINICAL OFFICER 40.0
Officer
$2,010,592 $812,343 $2,822,935
N/A EVP, CHIEF FINANCIAL OFFICER 40.0
Officer
$1,012,763 $468,800 $1,481,563
N/A Chief Executive Officer - Large Facility 40.0
Key Emp
$947,091 $242,355 $1,189,446
N/A Chief Executive Officer - Large Facility 40.0
Key Emp
$867,765 $192,162 $1,059,927
N/A DIVISION PRESIDENT 40.0
Key Emp
$1,059,194 $322,536 $1,381,730
N/A Chief Executive Officer - Large Facility 40.0
Key Emp
$989,626 $246,679 $1,236,305
N/A Division President 40.0
Key Emp
$1,075,459 $314,142 $1,389,601
N/A Chief Executive Officer - Large Facility 40.0
Key Emp
$885,914 $192,479 $1,078,393
N/A SVP, ACUTE CARE DELIVERY 40.0
Key Emp
$1,919,390 $664,173 $2,583,563
N/A CHIEF MARKETING OFFICER 40.0
Highest
$1,360,411 $68,287 $1,428,698
N/A SVP, Chief Supply Chain Officer 40.0
Highest
$944,913 $274,741 $1,219,654
N/A SVP, CHIEF INFORMATION OFFICER 40.0
Highest
$1,280,598 $181,078 $1,461,676
N/A CEO & CSO, BANNER RESEARCH 40.0
Highest
$929,252 $15,983 $945,235
N/A SVP, Care Management & CMIO 40.0
Highest
$916,499 $273,652 $1,190,151
N/A FORMER OFFICER 0.0
$526,807 $141,723 $668,530
N/A FORMER OFFICER 0.0
$720,668 $115,140 $835,808
Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year Revenue Expenses Assets Net Income
2024 No data No data No data No data
2023 $9,479,573,911 $8,672,348,619 $15,047,925,041 $807,225,292
2022 $8,495,325,836 $8,128,108,942 $13,723,050,138 $367,216,894
2021 $8,751,255,377 $8,082,987,870 $14,870,303,928 $668,267,507
2020 $7,472,338,143 $6,985,175,186 $14,496,823,687 $487,162,957
2019 $7,138,466,898 $6,456,059,999 $12,582,869,489 $682,406,899
2018 $6,767,434,029 $6,040,816,623 $10,967,547,022 $726,617,406
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