Banner Health

Banner Health

Banner Health Logo
Company type	Non-profit organization
Industry	Health Care
Founded	1937
Headquarters	Phoenix, Arizona
Key people	Peter S. Fine, President & CEO
Number of employees	28,000 products = Health care Services
Website	www.bannerhealth.com/

---

Copy and forward this URL

---

Banner Health is a non profit health system based in Phoenix, Arizona. The Banner Health System is one of the largest employers in the state - Banner Health has over 28,000 employees.[1][2][3][4] Banner Health provides emergency care, hospital care, hospice, long-term/home care, outpatient surgery centers, labs, and rehab services.

Controversy

In May of 2005, Sen. Chuck Grassley, chairman of the Committee on Finance, wrote to 10 major nonprofit hospitals, asking a series of questions about their care to the poor and service to the community. Banner Health was included in his inquiry. Grassley asked nonprofit hospitals to account for activities related to their tax-exempt Status. The inquiry was a continuation of his effort to review the non-profit sector in advance of legislation he intended to introduce to prevent abuse of the federal tax laws that created nonprofit organizations and encourage charitable donations. [5] [6]

The intended legislation would require nonprofit hospitals to spend a minimum amount on free care for the poor, also known as charity care, and set curbs on executive compensation and conflicts of interest. [7] [8]

In June of 2006 the United States Government Accountability Office responded to William M. Thomas, Chairman Committee on Ways and Means, House of Representatives, regarding inquiries concerning executive compensation issues at selected private nonprofit hospital systems. [9]

Banner, as a nonprofit, is required to file IRS form 990 each year and include compensation and benefit amounts for their highest paid executives. Part 5 of the Form 990 contains information of considerable interest. [10]

According to a recent IRS survey of 485 hospitals, nonprofit hospital presidents earned nearly $500,000 a year on average in salary and other benefits, and a smaller group more closely reviewed by the IRS had an average salary of $1.4 million. A number of Banner's officers, directors, trustees, key employees and retirees fall into the latter group. [11] [12]

Tax Exempt Status As shown on their IRS Form 990 [13] Banner Health maintains a tax-exempt status relieving them of paying many federal, state, county, city and local taxes. [14] [15] [16] [17] [18] [19] [20]

Standards for Community Benefits and Charity Contributions There are essentially no federal standards that define the "community benefit" hospitals must provide to earn their nonprofit status. A recent GAO report found nonprofit hospitals provide only slightly more charity care than their for-profit counterparts. [21] Nonprofit hospitals are allowed "broad latitude to determine the services and activities that constitute community benefit," according to the GAO. The report further states that "...consensus does not exist to define bad debt (the amount that the patient is expected to, but does not, pay) and the un-reimbursed cost of Medicare (the difference between a hospital's costs and its payment from Medicare) as community benefit. Variations in the activities nonprofit hospitals defined as a community benefit lead to substantial differences in the amount of community benefits they report". Of the seven states that Banner Health operates in (Arizona, Alaska, California, Colorado, Nebraska, Nevada, Wyoming) only three (California, Colorado and Wyoming) have community benefit requirement laws related to hospitals. None of the seven states that Banner operates in have penalties for non-compliance. Between January 1, 2000 and May 31, 2005 Banner filed tens of thousands of law suits against uninsured patients for amounts as little as three dollars. ($3.00) [22] [23] [24] [25] [26] [27] [28] [29] [30]

Banner's 2007 Charity Contributions [31] [32] Banner reported annual charity contributions of $64 million in 2007. [33] Banner's total receipts for the same year were over $10,000,000,000.00 (Ten billion dollars) [34] For the year 2007 charity contributions amounted to less than 64/10,000 or approximately six tenths of one percent of their gross receipts.

Banner Executives and Their Compensation

Historically, nonprofit hospitals have been guided by strongly motivated community leaders that are protective, devoted, and who freely contribute their time, energy, abilities and resources to promote the organizational goals of the hospital along with welfare of the community.

FINE, PETER[35] [36]
Fine is the current chief executive officer of Banner. He was selected in 2000. Previously he worked for Milwaukee-based Aurora Health Care and was employed in several hospital leadership positions in Illinois. Fine's education includes a bachelors degree from Ohio University and a master's degree from George Washington University. Fine's wages and compensation for 2006 were $1,417,345.00; Fine's benefit plans & deferred compensation plan contributions for 2006 were $728,610.00; Fine's net hourly wages for 2006 were $1,031.71 per hour; Fine's wages and compensation for 2007 were $1,436,266; Fine's benefit plans & deferred compensation plan contributions for 2007 were $ 1,178,000; Fine's net hourly wages for 2007 were $1,256.86 per hour.[37][38]

EDWARDS, SUSAN
Edwards joined Banner in 2002 as president of the Arizona region. Previously she worked for St. John's Health System in Michigan. Edwards' education includes a degree in biology from Emory and Henry College, a health administration degree from Duke University, and a law degree from Wayne State University. Edwards' wages and compensation for 2006 were $775,700.00; Edwards' benefit plans & deferred compensation plan contributions for 2006 were $323,035.00; Edwards' net hourly wages for 2006 were $528.24 per hour; Edwards' wages and compensation for 2007 were $713,742.00; Edwards' benefit plans & deferred compensation plan contributions for 2007 were $543,130.00; Edwards' net hourly wages for 2007 were $604.27 per hour.[39][40]

BUNNELL, RONALD
Bunnell joined Banner in 1986, DBA as Lutheran Health Systems at that time. Previously he worked for Gary-Williams Oil Producer in Colorado. Bunnell's education includes a bachelor degree from Princeton University and science degree from the University of Colorado, at Boulder. Bunnell's wages and compensation for 2006 were $837,941.00; Bunnell's benefit plans & deferred compensation plan contributions for 2006 were $331,750.00; Bunnell's net hourly wages for 2006 were $562.35 per hour; Bunnell's wages and compensation for 2007 were $997,120.00; Bunnell's benefit plans & deferred compensation plan contributions for 2007 were $745,892.00; Bunnell's net hourly wages for 2007 were $837.99 per hour.[41][42]

BIXBY, DAVID
Bixby joined Banner in 1998, DBA as Lutheran Health Systems at that time. Previously he worked for Lewis and Roca in Arizona. Bixby's education includes bachelor degrees from Harvard University and the University of Cape Town, South Africa, and a law degree from Yale Law School. Bixby's wages and compensation for 2006 were $492,589.00; Bixby's benefit plans & deferred compensation plan contributions for 2006 were $216,290.00; Bixby's net hourly wages for 2006 were $340.81 per hour; Bixby's wages and compensation for 2007 were $444,134.00; Bixby's benefit plans & deferred compensation plan contributions for 2007 were $262,988.00; Bixby's net hourly wages for 2007 were $339.96per hour. [43][44]

HENSING, JOHN
Hensing joined Banner in 1995, DBA Samaritan Health System at that time. Hensing's education includes an undergraduate degree at Iowa State University and a medical degree from the University of Iowa College of Medicine. Hensing's wages and compensation for 2006 were $534,845.00; Hensing's benefit plans & deferred compensation plan contributions for 2006 were $107,093.00; Hensing's net hourly wages for 2006 were $308.60 per hour; Hensing's wages and compensation for 2007 were $1,007,814.00; Hensing's benefit plans & deferred compensation plan contributions for 2007 were $115,882.00; Hensing's net hourly wages for 2007 were $540.24 per hour.[45][46]

DORIA, SUSAN
Doria joined Banner in 2002. Doria's education includes a bachelor degree and an administration degree from Arizona State University. Doria's wages and compensation for 2006 were $784,363.00; Doria's benefit plans & deferred compensation plan contributions for 2006 were $187,404.00; Doria's net hourly wages for 2006 were $467.20 per hour.[47]

WELLIVER, CHUCK
Welliver is a former officer of Banner. Welliver's employee benefit plans and deferred compensation plans for 2005 were $3,831,222.00; Welliver's equivalent hourly wage would be $1,841.93 per hour.[48]

Financial Litigation

In recent years Banner has experienced increased and highly publicized scrutiny by state attorney generals regarding the sales of facilities, use of assets and other health care transactions. These activities have resulted in court actions. During the midst of a national health care crisis Banner announced that it was selling 27 hospitals and facilities in states that it has operations in. Banner claimed it had a right to millions of dollars in charitable assets from the sale of those facilities even though they had not paid for them originally. Furthermore, they intended to remove those funds from the states. The attorney's generals in New Mexico, [49] North Dakota and South Dakota challenged Banner's ability to remove the proceeds of the sales from their states, asserting that the funds were held in charitable trust. In late 2003 and early 2004, settlements in favor of the states were reached with the attorney general's of North and South Dakota and New Mexico. [50] [51] [52] Under the terms of the North Dakota settlement, Banner agreed to pay $1,000,000.00 to the North Dakota attorney general's office for distribution to the community. The successful South Dakota settlement required that Banner pay $1,800,000.00 into a community fund. Developments in nonprofit corporation law and court decisions also suggest that charitable trusts may no longer be applicable to nonprofit corporations. [53][54][55][56][57]
In order to settle allegations that the company submitted false claims to Medicare to obtain reimbursement for home health care visits by employees at its Wyoming facilities, Banner paid a settlement of $6,100,000.00. The government alleged that Banner Health, formerly known as Lutheran Health Systems, filed claims that were either not reasonable or necessary, or for which the amount, frequency and duration of services were not reasonable and necessary. The settlement is one of the largest recoveries by the United States in Wyoming. [58] [59] [60] [61][62]

Noteworthy Legal Cases

Pending:
Gibson vs. Banner Thunderbird Medical Center - Alleges Dirt, Dust, Insects in Operating Room - Has Photos
Arizona Supreme Court Case# CV2009-092649 - Multiple holes in the walls of the operating room which allowed dirt, dust, and insects to permeate the operating room causing serious contamination; air vents, electrical outlets and other equipment in the actual operating rooms where patients are taken for surgery which were liberally covered in mold, dust, rust, din, and even blood; supply rooms filled with medication and sterile supplies was ridden with mold, dust, blood, animal feces and insects are among the allegations. [63][64] [65] [66]

Resolved:
Wage Dispute
U.S. District Court - Nurses in Arizona have brought a class action complaint against Banner Health and 11 other Arizona hospital corporations in U.S. District Court. They charge that for years the hospitals have conspired to lower the wages paid to temporary nurses at hospitals throughout Arizona. [67][68] [69]
Switched at Birth
Wyoming Supreme Court - At Campbell County Memorial Hospital, staffed and operated by Banner Health Systems, nurses switched babies in the early morning hours when the respective mothers were unconscious. Plaintiffs have brought a negligence claim against the defendant, Banner Health Systems, for switching the children at birth. The complaint alleges damages for "great emotional pain, humiliation, anxiety, grief, and the expenses for psychological counseling".[70][71]
Banner, New Mexico Strike a Deal
U.S. District Court in Albuquerque - Banner Health Systems will agree to pay $4,000,000.00 for local health care charities and another $4,500,000.00 to pay off debt if its lawsuit is dismissed. [72]
Unconstitutional Threats
US District Court for the district of North Dakota - Banner Health asserted that the matter involved a federal question by way of the Young Doctrine and was unconstitutional. The Court dismissed the Banner claim against Wayne Stenehjem, Attorney General of North Dakota, finding that the Young Doctrine was inapplicable.[73]
Banner Sued by Physicians for Contract Breach
Phoenix, AZ Banner Health is being sued by a group of physicians for contract breach and for not dealing in good faith. The physicians claim that Banner wanted to end its agreement with Saguaro by making baseless allegations and has never provided any information to support its position. [74] [75] [76] [77]
Negligence
Alaska Supreme Court - Banner Health System was found negligent in handling a drug abuse patient. The case involved Laurence Kompkoff's attack on Diana Bryson with a gun and an attempt to rape her. Diana maintained Banner Health should have protected patients from potentially violent individuals. Banner maintained that it would have been in violation of federal confidentiality regulations if they had told her about Kompkoff's history. Banner lost the case in Superior court and appealed to the Alaska Supreme Court. The Supreme Court upheld the lower court's decision and Banner lost again. (Bryson v. Banner Health System, Alaska Supreme Court, No. S-10653/10673) [78] [79] [80]

Finance

Life Insurance Risks Funding Through Virgin Islands Branch Approved
US Labor Department - The plan, filed by Spring Consulting Group L.L.C. in Boston, states the policies will be written by Minnesota Life Insurance Co., which will fully reinsure the risk through the Virgin Islands branch, established last year for the purpose of reinsuring Banner Health employee benefits.[81]

Documents of Interest

Compliance Handbook
Banner Health - The Banner Compliance Handbook describes the company's rules, regulations and applicable laws that govern behavior of employees and how Banner does day to day business. [82]
Ambulance Protocols
Banner Churchill Community Hospital - This document provides guidance to ambulance staff on appropriate basic emergency care, respiratory, shock, medication, medical procedures, obstetric, pediatric and other emergency treatments. [83]
Washakie Medical Center Collections Agreement
Worland, Wyoming - Mutual promises between Banner's Washakie Medical Center and the Collection Center Incorporated are described in this Senate Finance researched document highlights include that commissions of 25% shall be paid on the monies recovered on any accounts assigned for collection and legal actions that can be taken against patients outstanding debts. [84] Additional agreement between Banner Health in Arizona [85] Additional agreement between Platte County Hospital [86]

Banner in the News

Gibson vs. Banner Thunderbird Medical Center - Alleges Dirt, Dust, Insects in Operating Room - Has Photos
Arizona Supreme Court Case# CV2009-092649 - Multiple holes in the walls of the operating room which allowed dirt, dust, and insects to permeate the operating room causing serious contamination; air vents, electrical outlets and other equipment in the actual operating rooms where patients are taken for surgery which were liberally covered in mold, dust, rust, din, and even blood; supply rooms filled with medication and sterile supplies was ridden with mold, dust, blood, animal feces and insects are among the allegations. [87] [88][89] [90]
Unnecessary Surgery
Page Arizona - A pregnant woman's has pleaded not to be forced into unnecessary surgery but is being ignored by Banner's Page Hospital administrators. They are threatening her with a court-ordered cesarean. Joy Szabo will be forced to drive 350 miles a week or so before her November 21 due date to be near a hospital in Phoenix that will allow her to have natural childbirth and avoid what is called by some an "Unnecaesarean" and it is akin to rape. [91] It is unlikely her husband, Jeff, who is staying behind with their three sons, will be able to make it to the hospital for the delivery.[92] [93] [94][95] [96][97][98] [99][100][101]
Christopher Cornue Resigns
Christopher Cornue will resign as chief executive officer of McKee Medical Center because of the declining health of his father-in-law and other family concerns. [102] [103] [104] Swine Flu Safety and Infection Control
H1N1 (swine flu) Employee Safety and Infection Control - Booklet that describes Emergency Room Procedures to reduce the risk of Swine Flu infection [105]
New Children's Hospital Opens
Situated in Mesa Arizona, directly across the street from a recently renovated McDonald's Quick Service Restaurant, [106] [107] is the New Banner Owned Cardon's Children s Medical Center. Scheduled to open on November 2nd, the $356 million dollar facility boasts a neighborhood-themed atmosphere with an indoor park, a playground, street lamps, and tree house. At a cost of over $3,000,000.00 (three million dollars) per bed, the facility is one of the most expensive childrens hospitals in the world. The center is named after Wilford Allen Cardon, former Banner board member, Mormon community leader and current director of the Mormon church's Perpetual Education Fund for Brazil. [108] [109] Attendance is limited to children 18 years old and under. Parents can take advantage of the valet parking [110] that is available on the luxurious hotel like campus of Banner Desert Medical Center in Mesa Arizona. [111]

Locations

Banner Health facilities can be found in seven states:

• Alaska
  • Fairbanks Memorial Hospital/Denali Center
  • Tanana Valley Clinic
• Arizona
  • Banner Alzheimer's Institute
  • Banner Arizona Medical Clinic
  • Banner Baywood Medical Center
  • Banner Behavioral Health Hospital
  • Banner Boswell Medical Center
  • Banner Children's Hospital
  • Banner Corporate
  • Banner Del E. Webb Medical Center
  • Banner Desert Medical Center
  • Banner Estrella Medical Center
  • Banner Gateway Medical Center
  • Banner Good Samaritan Medical Center
  • Banner Heart Hospital
  • Banner Home Care
  • Banner Hospice
  • Banner Ironwood Medical Center
  • Banner Medical Group
  • Banner Occupational Health
  • Banner Poison Center
  • Sun Health
  • Banner Surgery Centers
  • Banner Thunderbird Medical Center
  • Community Partnerships
  • Page Hospital
  • Williams Health Care Center
• California
  • Banner Lassen Medical Center in Susanville, CA
• Colorado
  • Banner Home Care & Medical Equipment
  • Banner Medical Clinics
  • East Morgan County Hospital
  • McKee Medical Center
  • North Colorado Medical Center in Greeley, Colorado, USA
  • Sterling Regional MedCenter
• Nebraska
  • Ogallala Community Hospital
  • Ogallala Medical Group
• Nevada
  • Banner Churchill Community Hospital in Fallon, NV
• Wyoming
  • Community Hospital
  • Platte County Memorial Hospital
  • Washakie Medical Center

External links

• A list of Arizona Hospitals: [112]
• Business Journal Banner Health story consolidation: [113]
• Tech Republic Banner Health story consolidation: [114]
• Banner Health Website: [115]
• Sun Health Joins Banner Health: [116]
• Cisco Optical Partners with Banner Health: [117]
• Non-profit hospital responses to Finance Committee: [118]
• Boston Globe - Nonprofit hospitals targeted on leader pay: [119]
• Wall Street Journal- Grassley Targets Nonprofit Hospitals on Charity Care: [120]
• American Spectator - Co-Ops and the Non-Profit Hospital Boondoggle: [121]
• United States Government Accountability Office - Survey on Executive Compensation Policies and Practices: [122]
• IRS Exempt Organizations (TE/GE) Hospital Compliance Project: [123]
• Nonprofit Information: [124]
• How to Read the IRS Form 990: [125]
• Banner Health IRS Form 990 Year 2000: [126]
• Banner Health Top 5 Year 2002: [127]
• Banner Health IRS Form 990 Year 2004: [128]
• Banner Health IRS Form 990 Year 2005: [129]
• Banner Health IRS Form 990 Year 2006: [130]
• Banner Health IRS Form 990 Year 2007: [131]
• Banner Health IRS Form 990 Year 2008(TBA): [132]
• Banner Health IRS Form 990 Year 2009(TBA): [133]
• Banner Health IRS Form 990 Year 2010(TBA): [134]
• South Dakota Supreme Court Banner Health System v. Lawrence E.Long: [135]
• Attorney General Madrid's statement: [136]
• Consumers Union - Keeping the Trust: [137]
• $11.5 Million New Mexico Settlement: [138]
• US Senate Bill SB894: [139]
• ABI World- The Charitable Trust Doctrine, Lessons and Aftermath of Banner Health: [140]
• South Dakota Judicial Comment - 22543: [141]
• US Department of Justice Health Care Fraud and Abuse Control Program: [142]
• Health Care Fraud in America: [143]
• Banner Charity Processing: [144]
• Sturgis community celebrates $629K check from Banner Health settlement: [145]
• Political Contributions: [146]
• Sterling Regional Medical Center and East Morgan County Hospital collections agreement: [147]
• Banner Charity Care: [148]
• Financial Assistance Program for Uninsured Patients: *[149]
• Installment Payment Arrangements: [150]
• Prompt Pay Discount: [151]
• Arizona Financial Assistance Materials: [152]
• Samaritan Health Services Charity Care: [153]
• Banner Health and CSB LLC: [154]
• Peter Fine-Country Club Dues: [155]
• 2002 Top 5 Travel Expenses: [156]
• Banner Health and Alaska Financial Services a Delaware corporation: [157]
• Banner Prompt Pay Discount: [158]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (1) (500.0kb): [159]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (2) (321.0kb): [160]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (3) (25.00Mb): [161]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (4) (7.300Mb): [162]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (5) (4.800Mb): [163]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (6) (1.000Mb): [164]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (7) (690.0kb): [165]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (8) (690.0kb): [166]
• Lawsuits Filed By Banner Health Care Against Uninsured Patients (9) (7.160Mb): [167]
• Access to Banner Health System Records Via North Dakota State University [168]
• Debbie Evans relator (whistle blower) Settlement: [169]
• Whistle Blower - Pending Case [170]
• BannerHealthSucks.com: [171] [172][173]
• BannerHealthReallySucks.com: [174]:[175][176]