Organization supports more than 44,000 jobs and $2.4 billion in salaries, wages and benefits in the state
Generates $623 million in tax revenues
Related PDFs: Novant Health Economic Impact Study | Novant Health Economic Impact Fact Sheet
Winston-Salem, NC – An economic impact analysis commissioned by Novant Health and completed by the Center for Healthcare Economics and Policy (which is a separate business unit of the Economics Practice of FTI Consulting, Inc.) revealed the organization’s activities generated nearly $5.9 billion of economic activity in the state of North Carolina in 2012.
“Novant Health is known throughout the state of North Carolina for its programs, services and remarkable patient experience,” said Carl Armato president and CEO of Novant Health. “What may not be understood is our significant impact on the North Carolina economy. We drive jobs, tax revenue and overall economic output in our state. We are proud to be such a significant contributor to keeping North Carolina economically and physically healthy.”
Novant Health operates 11 acute care facilities, 10 outpatient surgery centers, 29 diagnostic imaging centers, seven rehabilitation centers, and more than 320 physician, corporate and administrative offices in the state of North Carolina.
“Understanding the complete picture of our contributions to the local economy is critical to Novant Health,” said Fred Hargett, CFO of Novant Health. “As the healthcare industry continues to be impacted at state and federal levels, it is crucial for our communities to see what we deliver to them beyond remarkable patient care.”
Economic impact was measured using data provided by Novant Health for net operating revenues, salaries, wages and benefits, and capital expenditures for construction at all Novant Health facilities in the state of North Carolina. The findings were determined utilizing input-output modeling using IMPLAN, an industry-standard software and data package for regional economic impact analysis.
As a key employer and contributor in the state of North Carolina, the results of the economic impact study show Novant Health supports $5.9 billion in economic activity, over 44,000 jobs and generates $623 million in tax revenues.
Direct and secondary impacts of Novant Health’s operations contributed approximately $5.7 billion of economic activity to the state and its spending on new construction contributed an additional $169 million of economic activity.
“A successful and viable Novant Health is a strong driver of economic growth in North Carolina,” said Armato. “Despite the ongoing challenges in our industry, our organization delivers a significant impact to the health of our communities and our state. The economic impact study makes clear that our continued investment here is a strong contributor to the overall North Carolina economy.”
Novant Health directly employed 21,288 in the state of North Carolina in 2012 and supported more than 44,400 total jobs in the state.
In 2012, Novant Health employees in North Carolina earned a combined total of nearly $1.5 billion in salaries, wages and benefits. Additionally, as both a provider of healthcare and a purchaser of local goods and services, Novant Health indirectly supported 23,137 additional jobs paying a combined total of nearly $914 million in salaries, wages and benefits in 2012.
In the Winston-Salem area, Novant Health’s activities directly and indirectly supported an estimated 18,447 jobs earning nearly $950 million in salaries, wages and benefits in 2012
In the Charlotte area, Novant Health’s activities directly and indirectly supported nearly 23,000 jobs earning approximately $1.3 billion in salaries, wages and benefits in 2012.
Novant Health facilities provided care for residents from each of North Carolina’s 100 counties in 2012.
Novant Health’s 11 hospitals in North Carolina provided care for nearly 120,000 inpatient and more than 730,000 outpatient visits in 2012.
Additionally, more than 1,000 physicians and 400 mid-level providers at Novant Medical Group provided a wide range of services in 51 specialties at more than 320 locations in the state. Nearly four million physician office visits were recorded in 2012.
Novant Health’s charity care in North Carolina has increased every year since 2009. In 2012, the organization provided approximately $111 million in charity medical care for the uninsured and a total community benefit of nearly $506 million.
Consistent with its overall mission to serve its neighbors, Novant Health has a generous policy to provide charity care free of charge to individuals below 300% of the federal poverty level. In 2010, the organization was recognized in a report by the North Carolina Justice Center for “the most sound and clear [charity care] policy of any hospital system in North Carolina.”
Novant Health contributed nearly $10 million in 2012 to research, community health improvement services and benefit operations, and cash and in-kind contributions to community groups in North Carolina. Additionally, the organization subsidized $39 million in health services in the state and incurred bad debt expense costs of more than $48 million.
In 2012, Novant Health generated significant construction activity in North Carolina.
Novant Health construction projects led to more than $95 million in construction expenditures and created an indirect economic impact of more than $31 million through demand for goods and services spurring expenditures by the construction industry. The activity also induced more than $42 million in spending on additional goods and services.
Impact in Winston-Salem
Operations of Novant Health in the Greensboro-Winston-Salem-High Point combined statistical area (CSA) made a significant economic impact in 2012.
Novant Health operations supported 17,964 jobs and contributed to an estimated $243 million in tax revenue ($74 million in state & local and $169 million in federal tax revenue).
Additionally, construction activity contributed nearly 500 jobs and added approximately $20.7 million in labor income.
Novant Health operations made an impact on many industries in the market including food and beverage, investment, and real estate.
Total impact in the market was more than $2.4 billion from operations and construction activity.
Summary of economic impacts in the Greensboro-Winston-Salem-High Point CSA, 2012
Impact in Charlotte
Operations of Novant Health in the Charlotte-Gastonia-Salisbury CSA made a significant economic impact in 2012.
Overall, Novant Health operations in the combined statistical area generated more than $3 billion of economic impact from operations and construction activity.
State and local tax revenue totaled nearly $109 million, while federal tax revenue totaled $231 million. The operations in the market supported more than 22,000 jobs and nearly $1.3 billion in labor income as a provider of healthcare and a purchaser of local goods and services.
Construction activity contributed another nearly 900 jobs and added approximately $48 million in labor income.
Summary of economic impacts in the Charlotte-Gastonia-Salisbury CSA, 2012
Contact: Caryn Klebba, 704-384-3909 or firstname.lastname@example.org