Novant Health reports 2018 audited financial results
Health System provides nearly $155 million in financial assistance and more than $883 million in total community benefit
WINSTON-SALEM, N.C. – Novant Health today announced 2018 audited financial results for the year ended Dec. 31. For 2018, Novant Health reported net income of $94.0 million on operating revenues of nearly $5 billion. The not-for-profit health system also reported $883.7 million in total community benefit (including financial assistance and unpaid cost of Medicare and Medicaid), up from $794.4 million in 2017. Novant Health provided $154.7 million in financial assistance to members of our communities in 2018.
Fiscal year 2018 net income, also referred to as excess of revenues over expenses, was comprised of $272.2 million in operating income, $178.2 million in nonoperating losses, including investment losses of $160.5 million. The 2018 financial results compare with 2017 operating income of $174.4 million, $303.4 million in nonoperating income, which includes investment income of $307.8 million and nonoperating loss of $4.3 million
In 2018, the unreimbursed costs to provide healthcare services to Medicare and Medicaid patients were $516.8 million and $141.8 million, respectively.
Carl S. Armato, president and CEO of Novant Health, commented that the organization’s team members delivered remarkable care and invested in communities in 2018.
“In 2018, Novant Health made a measurable impact in the communities we serve,” said Armato. “Our team members worked hard to deliver remarkable care to all patients, including those who may not have had access to care previously. With our more than $883 million in community benefit, we focused our efforts on offering free health education programs, as well as free community care initiatives and services. We also recognized that health is determined by much more than just access to quality healthcare.”
Armato continued, “Novant Health is dedicated to addressing gaps in other factors of health like education, finances and community. We connected patients to social services and made contributions to community programs that address these social determinants of health.”
2018 was an opportunity to highlight resiliency in the health care industry, said Fred Hargett, Novant Health chief financial officer. Novant Health focused on engaging its providers in the mission to provide a remarkable patient experience and continued to invest in team member engagement to enable top patient care and experience.
“With a healthy balance sheet, Novant Health continues to invest in team members,” said Hargett. “As a financially strong organization, we can provide not only for our community, but for our people. While the pace of change continues in state and federal regulations, our team members are dedicated to their patients despite the uncertainty in our industry. Novant Health is committed to building a resilient workforce so team members can focus on caring for our communities.”
Organizational initiatives expand access to healthcare
In 2018, Novant Health Mint Hill Medical Center opened with great results. The city of Mint Hill embraced its new community hospital, which opened in October. Improved access to community care meant 60 babies were born in their hometown, more than 6,600 patients received care close to home, and more than 330 team members brought remarkable healthcare to Mint Hill.
In 2018, capital investments totaled $390.8 million and, in addition to ongoing investments in technology and the completion of Mint Hill Medical Center, key projects included:
- The opening of Novant Health Brunswick Endoscopy Center, Brunswick County’s first freestanding outpatient endoscopy center.
- Continued construction to add 48 beds to Novant Health Huntersville Medical Center, scheduled to open summer 2019.
- The opening of Winston-Salem’s 68-bed Novant Health Rehabilitation Hospital in partnership with Encompass Health, formerly known as HealthSouth.
- Continued construction on the John M. and Claudia W. Belk Heart & Vascular Institute and Edward I. and Agnes B. Weisiger Cancer Institute in Charlotte, scheduled to open in 2020.
- Partnering with GoHealth Urgent Care to open at least 15 Novant Health-GoHealth Urgent Cares in North Carolina.
- Opening, on average, one new Novant Health Medical Group clinic per week.
Helping communities in need
Novant Health offers programs and activities to improve access to healthcare services, enhance the health of the community, advance medical or health knowledge, or reduce the burden on government to provide health services. In 2018, Novant Health made a significant community impact to directly address the community health needs assessments across the system. Hospitals across the system impacted their surrounding communities with free programs and services.
Novant Health Brunswick Medical Center provided more than 150 uninsured women with mobile mammograms through a partnership with Susan G. Komen breast cancer foundation and Pfizer.
Novant Health Charlotte Orthopedic Hospital team members packed 350 hygiene kits for homeless guests of the Salvation Army Center of Hope.
Novant Health Huntersville Medical Center delivered free nutrition programming to 173 underserved school-age children in Huntersville through a partnership with Novant Health Parish Nursing Program and a grant from the Lilly Foundation, which supports initiatives designed to improve health and strengthen communities.
Novant Health Matthews Medical Center teamed with Union County Public Schools to screen a documentary and panel discussion for 60 students and parents on recognizing and responding to trauma in children, and engaged 46 team members as TutorMate reading volunteers.
Novant Health Mint Hill Medical Center completed projects throughout Mint Hill to give back to the community as part of a “Day of Serving.” More than 170 team members performed work at Clear Creek Elementary School, Blessed Assurance Adult Day Care, Mint Hill Historical Society, Bright Blessings and Servant’s Heart of Mint Hill.
Novant Health Presbyterian Medical Center funded the expansion of free mental health counseling for LGBTQ youth and people who support them through a $20,000 charitable contribution to the Time Out Youth Center. Funds provided 35 clients with free individual, couples or family mental health counseling; 350 sessions of free mental health counseling; 30 clients with walk-in crisis interventions; and 30 clients with referrals for mental health services.
Novant Health Rowan Medical Center offered free support groups, smoking-cessation classes and mobile mammograms to 445 individuals, addressing a key identified community health need of cancer prevention.
Novant Health Clemmons Medical Center taught participants weight loss strategies through free or discounted “Weigh For You” classes, an investment of more than 130 team member hours.
Novant Health Forsyth Medical Center served 161 individuals from 12 African-American churches through Project Care, which helps community members at high risk of chronic diseases, such as heart disease, type 2 diabetes and stroke. The project provides exercise classes, wellness coaching, support groups and nutrition demonstrations.
Novant Health Kernersville Medical Center assembled 642 “calm down kits” for Forsyth and Davidson county elementary schools serving children primarily from low-income backgrounds. Calm down kits include sensory toys and strategies to ease an anxious child. A total of 126 team members from Kernersville, Clemmons Medical Center and Thomasville Medical Center joined in the activity.
Novant Health Medical Park Hospital partnered with the American Heart Association to sponsor a “Red Dress Tea” for more than 300 women, providing free heart health information and a question-and-answer panel. Targeted participants included black women, who are disproportionately at risk for heart disease and stroke.
Novant Health Thomasville Medical Center coordinated with Davidson County Stop Prescription Abuse Now in promoting proper disposal of medications to help with the growing number of overdoses in the county. The hospital hosted the Lights of Hope candlelight vigil raising awareness of substance use disorder and assisted with communitywide seminars on substance use featuring a Novant Health pain management physician.
Novant Health UVA Health System Culpeper Medical Center led 15 hours of free continuing education classes for local emergency services professionals on addressing endocrine and central nervous system emergencies, which are associated with diabetes and stroke.
Novant Health UVA Health System Haymarket Medical Center collaborated with local law enforcement agencies and groups to collect nearly 255 pounds of medications for Drug Take Back Day. Residents dropped off unused or expired prescription medications, which pose public safety issues, from accidental poisoning to misuse and overdose. Novant Health UVA Health System Prince William Medical Center collected 380 pounds.
Novant Health UVA Health System Prince William Medical Center checked blood pressure and body mass index and provided mobile mammography screenings and wellness information to 109 community attendees of the annual Manassas African American Heritage Festival.
Financial summary (in millions of dollars)
| Operating revenues
| Operating expenses
| Operating income
| Investment income (loss)
| Other non-operating income (expense)
| Net income