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Novant Health ::
Presbyterian |
Forsyth |
Thomasville |
Brunswick |
Rowan |
Prince William |
Franklin |
Upstate Carolina |
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Novant Health releases 2002 year-end financial results
CHARLOTTE/WINSTON-SALEM, NC - Novant Health announced today its year-end 2002 financial results. The not-for-profit healthcare system, which includes Forsyth Medical Center in Winston-Salem and Presbyterian Hospital in Charlotte, achieved net income of $40.3 million.
The figures, which are unaudited, represent the third straight year of significant growth for the health system in terms of income attributed strictly to operations - even at a time when lower government reimbursements and higher expenses are having an impact on many healthcare systems.
"As a not-for-profit organization, the $40 million will mainly be used to fund an ever-increasing list of new technology and facility renovations," said Paul Wiles, president and CEO of Novant Health. "This money has to fund the future for all of our hospitals and health facilities."
Dean Swindle, chief financial officer of Novant Health, pointed out that the positive financial outlook is a continuation of a trend, both at the system's hospitals and at its physicians' practices.
"We're seeing continued improvement in our financial growth, which we attribute to the quality of our care and the quality of our employees," said Swindle.
In 2001, Novant's financial picture was enhanced significantly because of a one-time boost of $32 million from the sale of PARTNERS. Not counting that sale, Novant Health earned $19 million in operating and investment income that year.
This year's results of $40.3 million takes into account a $3.2 million loss in investment income.
Swindle said that the strong financial results come from increasing volumes of patients choosing Forsyth Medical Center, Presbyterian Hospital and other Novant facilities, coupled with finding better ways to manage expenses.
"This year, it's really been a combination of factors," Swindle said.
Swindle said that Novant has focused more of its efforts in reducing expenses by limiting growth in corporate administrative areas; and by replacing contract labor in areas such as nursing with fulltime permanent employees. The changes alone saved the hospitals more than $10 million in 2002, and improved patient care and employee morale.
A second initiative, which depended on employees from throughout Novant Health to come up with ways to save money, has saved more than $13 million since its inception, $5 million in 2002 alone.
Twelve teams - representing everything from nursing to oncology to respiratory therapy - meet regularly to identify ways to find, purchase and distribute supplies throughout the system at the lowest possible costs, without sacrificing quality.
The figures reported for Novant Health represent all facilities, which includes hospitals, nursing homes and physicians' practices.
Novant and its 14,000 employees serve more than 3.4 million people in 32 counties reaching from southern Virginia to northern South Carolina.
The system's facilities in the Triad region include Forsyth Medical Center and Medical Park Hospital, both in Winston-Salem, and Thomasville Medical Center in Thomasville. In Charlotte, the facilities include Presbyterian Hospital, Presbyterian Hospital Matthews, and Presbyterian Orthopaedic Hospital. Novant also operates 69 physician practices in a wide range of primary care and specialty areas.
Overall, Novant experienced an increase in patient usage of between 4 percent and 8 percent, generally more on the outpatient side.
Outpatient surgeries were up overall by 6.5 percent at Forsyth and 5 percent at Presbyterian. Outpatient cancer treatments, which included surgeries, radiation and chemotherapy, were up by 5.3 percent at Forsyth and 16 percent at Presbyterian. By far the biggest increases were in outpatient cardiology treatments, which were up by 35 percent at Forsyth and 26 percent at Presbyterian.
Novant officials say that even though the health system experienced positive growth again this year, there are storm clouds gathering on the horizon across North Carolina and the nation.
Even though hospitals across the state generate $17 billion each year in revenues and amount to a healthcare safety net, fully a third are running in the red and an additional third have margins so slim that access to capital is non-existent.
The North Carolina Hospital Association points out that hospital expenses are rising three times faster than revenues - especially in labor, which accounts for about 60 percent of a hospital's costs - because of shortages of healthcare workers.
Novant hospitals, and others across the setate, are also facing higher costs for liability insurance, blood, drugs, regulatory compliance, technology and terrorism preparedness, at almost exactly the same time that demand is expected to increase because of rising numbers of uninsured workers and an aging population.
"If the past is any indication, the future will indeed be a challenge," said Wiles. "The prices we pay for new medical technology and pharmaceuticals is far outpacing what insurers are willing to pay for healthcare services. Yet we're committed to providing the best care possible for our patients. That's our challenge - today and in the years ahead."
Novant Health is a non-profit healthcare system in western North Carolina, serving people in 32 counties reaching from southern Virginia to northern South Carolina. Novant and the majority of its facilities are 501(C)3, private, community organizations.
The healthcare system consists of seven hospitals in the Triad and Charlotte markets: Forsyth Medical Center, Medical Park Hospital, and Thomasville Medical Center in the Triad market; Presbyterian Hospital, Presbyterian Orthopaedic Hospital, Hemby Children's Hospital and Presbyterian Hospital Matthews of the Charlotte market. Other facilities and programs of Novant Health include three philanthropic foundations, three nursing home and senior residential facilities, physician clinics, outpatient surgery and diagnostic centers, rehabilitation programs and community health outreach programs.
Novant Health has been nationally recognized as one of "10 Best Companies for Working Mothers" by Working Mother Magazine and one of the "Top 40 Family-Friendly NC Companies" by Charlotte Parent and Piedmont Parent magazines.
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