Banner Health reports increasing revenues, operating margins — and expanding access

Banner Health, the nonprofit, 33-hospital health system headquartered in Phoenix, had $16 billion in revenues in 2025, up from $15.6 billion in 2024 and its operating margins grew to 2.8% in 2025, up from 2.3% in 2024, according to figures supplied by its public relations department after the health system published its 2025 annual report earlier this week.

The report highlights the $1.1 billion in community benefits that Banner says its provides, a number that includes $257 million in charity care, $536 million in unpaid costs associated with public programs, and $7 million in research activities.

"As a nonprofit health system, every dollar we earn is invested into our care, services, technology, talent and communities, not Wall Street shareholders," Amy Perry, president and CEO, said in the news release about the annual report.

A message at the beginning of the report from Perry and Anne Mariucci, chair of the health system’s board of directors, also highlights a $21.6 million grant from the National Institutes of Health to Banner’s Alzheimer’s Institute to study the relationship of blood pressure to Alzheimer’s and the 10th anniversary of Banner’s partnership with the University of Arizona.

“With more than 1,300 residents and fellows in rural, urban and community graduate medical programs, we are helping to address the national healthcare worker shortage,” Perry and Mariucci said in the annual report message.

The annual report says that the health system is adding 16 new groups in the Phoenix area, including 229 additional residents and fellowship positions by 2027, including 140 new family and internal medicine physicians.

In addition to operating hospitals and clinics, Banner has a number of health insurance plans, including a Medicare Advantage plan, two Medicaid plans and a plan that operates jointly with Aetna, the health insurance branch of CVS Health. The annual report trumpets a program in Banner’s largest Medicaid plans that uses gift cards to buy “healthy household basics” as an incentive to get people to be screened for certain conditions. According to the report, the number of people screened for colorectal cancer increased from 186 in 2024 to 399 in 2025. The number of people screened for high blood pressure jumped from 1,122 in 2024 to 13,955 in 2025, and the number of people who earned the earnings tripled from 2024.

The annual report also portrays Banner as an economic engine, citing a direct workforce of 60,000 people, an additional 80,000 people with jobs indirectly related to the health system, and $12.8 billion in economic impact in the areas in which it operates. In addition to Arizona, Banner has facilities in California, Colorado, Nebraska, Nevada and Wyoming.

A section of the annual report about expanding access listed eight projects:

• The opening of a 65,000-square-foot multispecialty health center in Goodyear, Arizona
• The addition of 36 inpatient beds to the Banner Estrella Medical Center in west Phoenix as part of $35 million project
• A medical evacuation helicopter based in Casper, Wyoming
• The addition of Village Medical primary care and walk-in clinics in northern Colorado that added seven primary care clinics and 47 providers to Banner’s network
• An $11.5 million expansion project at Banner Casa Grande Medical Center in Casa Grande, Arizona
• Reopening and expanding the emergency department at Banner Desert Medical Center in Mesa, Arizona
• The opening of Banner Health Center Pinnacle Peak in North Scottsdale, Arizona
• The opening of same-day care clinics in Payson, Pinetop-Lakeside and Show Low, communities in eastern Arizona