Banner Health, the Phoenix, Arizona-based not-for-profit health system, is bucking a trend. Thanks to the impact of the COVID-19 epidemic in the United States, some healthcare analysts expect 2020 will be a “throw-away year” for earnings and M&A activity.
Not so for Banner Health, which owns and operates 28 acute-care hospitals in six states, as well as Banner Health Network, Banner University Medicine, academic and employed physician groups, long-term care centers, outpatient surgery centers and an array of other services. It reported revenue of $2.37 billion in the first quarter of 2020, up from $2.33 billion in the same period in 2019.
In August 2019, the system acquired the land and assets of North Colorado Medical Center (225 beds) in Greeley, which Banner had operated since 1995. The Weld County Board of Commissioners approved the asset sale, which included urgent care, emergency room and clinic buildings. In December, Banner added Phoenix Orthopaedic Consultants, a four-physician orthopedic practice specializing in fracture and trauma treatment for children and adults, hand surgery, joint replacement surgery, sports medicine, spine surgery and general orthopedic care.
The acquisitions continued in 2020, as the system added two more physician practices in February: Phoenix-based The Orthopedic Clinic Association (18 physicians) and Chandler, Arizona-based Desert Vascular Specialists (two physicians).
On July 14, Banner announced its acquisition of Wyoming Medical Center (WMC), a 212-bed acute care general hospital in Casper, Wyoming. Banner agreed to buy the land, buildings and equipment for $157 million and eliminate approximately $50 million in debt held by Natrona County, where WMC is located. The county owns the land, building and equipment but does not fund the hospital’s operations. Banner also committed to invest a minimum of $100 million in WMC over the next 10 years.
WMC will be Banner’s flagship hospital in Wyoming and a regional referral center. Banner has three other rural hospitals in the state. WMC will keep its name and co-brand with Banner.
A separate agreement with Natrona County will allow the county to provide one-time funding support to the WMC foundation, secure more than $120 million that can be invested for the county’s future and eliminate approximately $50 million in county debt.
