Novant Health reports healthy 2017 financial results

Novant Health has announced its 2017 audited financial results for the year ended Dec. 31.

For 2017, Novant Health reported net income of $477.9 million on operating revenues of $4.6 billion. The not-for-profit health system also reported $794.4 million in total community benefit (including charity care and unpaid cost of Medicare and Medicaid), up from $725.5 million in 2016. Novant Health provided $138.9 million in financial assistance to members of our communities in 2017.

Fiscal year 2017 net income, also referred to as excess of revenues over expenses, was comprised of $174.4 million in operating income, $303.4 million in non-operating income, including investment income of $307.8 million. The 2017 financial results compare with 2016 operating income of $271.0 million, $184.2 in non-operating income, including investment income of $151.1 million.

Carl S. Armato, president and CEO of Novant Health, commented that the organization made a significant investment in its team members by awarding over $111 million in bonus income in 2017.

“In 2017, Novant Health continued to invest in its team members, staying true to our commitment of being world-class at caring for our people so they can be world-class at caring for our patients,” said Armato. “Every eligible team member received a bonus in 2017. Additionally, Novant Health invested in opening access to quality health care in our communities by opening about one new clinic a week – helping people stay healthy and out of the hospital.”

The uncertainty around the future of the Affordable Care Act increased turbulence in the health care industry during 2017, said Fred Hargett, chief financial officer for Novant Health. With continued pressures in the industry, Novant Health has managed itself responsibly to prepare for the ongoing challenges of the future.

“Novant Health continues to maintain a healthy balance sheet which positions us strongly to be able to invest in our people and our communities, despite swings in health care utilization,” said Hargett. “While our organization has done a remarkable job in helping people in the communities we serve sign up for health insurance coverage under the Affordable Care Act, the uncertainty out of Washington caused concern among those who qualified for insurance from the marketplace. As a result, many elected to stay away from the doctor and ended up in our emergency rooms. Stabilization of the market is needed, and we look forward to working with our elected officials in 2018 to help bring about that change.”

Organizational initiatives invest in people and expand access to health care

In 2017, Novant Health added a key statement about the value of its people to its mission, vision and values. The new credo reads, “We are an inclusive team of purpose-driven people inspired and united by our passion to care for each other, our patients and our communities.” The statement underscores the importance of team members in the health of the community and the organization.

“Without our remarkable team members, we would not be Novant Health,” said Armato. “We are devoted to helping our people be change-ready and resilient to combat the stresses they face in this ever-changing industry. In 2013 we launched the physician wellness and resiliency program and, in 2017, we doubled down on our efforts and expanded the program to nurses. Since 2013, about 2,000 Novant Health physicians, nurses and executive leaders have completed the program, which we call the Novant Health One Team Leadership Experience.”

The organization also invested in access to health care with several key projects. In 2017, capital investments totaled $286 million and, in addition to ongoing investments in technology, key construction projects included:

Completion of Novant Health Clemmons Medical Center, adding 36 beds and three operating rooms.
Opening of Novant Health Charlotte Orthopedic Hospital with 32 beds and seven operating rooms.
Continued construction of Novant Health Mint Hill Medical Center, scheduled to open with 36 beds in fall 2018.
Groundbreaking to add 48 beds to Novant Health Huntersville Medical Center.
Expanded the use of our electronic medical record. Today more than 800,000 people are registered Novant Health patient portal users.