Longtime Banner Health CEO plans to retire, new leader named

After serving as CEO of Banner Health for nearly a quarter of a century, Peter S. Fine has announced his plans to retire.

Peter Fine is stepping down as CEO of Banner Health on June 30, and Amy Perry, Banner's president, will succeed him as CEO.

The system, based in Phoenix, Arizona, has already named his successor. Amy Perry, Banner’s president and chief operating officer, will take over as the system’s chief executive officer when Fine retires June 30.

Fine has led Banner Health since 2000 and is credited with leading the transformation of the organization, which is one of the largest secular nonprofit health systems in the country. Banner operates 30 acute care hospitals and three rehab hospitals in six states, along with a health plan with 1.2 million covered lives. Banner boasts more than $12 billion in revenue and is Arizona’s largest private employer.

He also plans to resign from Banner’s board and serve as CEO emeritus through January 2025.

Perry joined Banner as president in November 2021 and the system said she played a critical role in helping the system recover from the COVID-19 pandemic. She has spent more than 30 years in healthcare, and previously served as executive vice president of Atlantic Health System and CEO of its hospital division.

Anne Mariucci, chairwoman of Banner’s board of directors, called Perry the "ideal leader" for the organization.

“She has crafted an exciting plan for Banner,” Mariucci said in a statement. “We are confident that Amy will propel Banner to further success with a technology-forward, people-centered approach to serve our patients, caregivers and diverse communities.”

Perry said she is “deeply grateful for the opportunity to lead this remarkable health system and outstanding team.” She also said Banner would work to increase access to healthcare.

“Leaning into technology and innovation, Banner will define safety, trusted relationships, best-in-class care and affordable coverage,” Perry said in a statement.

Fine's tenure as CEO of Banner Health far exceeds the typical chief executive of hospital systems. The average hospital CEO serves for about 5.5 years, according to data from the American College of Healthcare Executives.

Perry lauded Fine for his “tremendous accomplishments.”

Fine said he looks forward to working with Perry to make sure there’s a smooth transition of leadership.

“It has been a pleasure over the last two years to partner with her and our team to realize our current success,” Fine said in a statement.

Banner Health employs more than 55,000 people. The system received an “AA-” rating from Fitch Ratings last year.

In issuing the rating, Fitch noted “the system's consistently strong financial profile assessment, the strength of its core hospital delivery system and growth of its insurance division, which combine to make Banner one of a handful of successful integrated delivery systems in Fitch's rated portfolio.”

Banner remained profitable, although just above the break-even point, in the 2022 fiscal year, Fitch noted. Many nonprofit health systems had negative operating margins in 2022, which was the worst financial year of the pandemic for many hospitals.