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WINSTON-SALEM, N.C. – Novant Health today announced audited financial results for the year ending December 31, 2020. Novant Health reported net income, also referred to as excess of revenues over expenses, of $382.2 million on operating revenues of $5.68 billion. This compares to a net income of $523.5 million on operating revenues of $5.43 billion in 2019. Operating expenses rose 4.1% in 2020 to $5.49 billion.
The fiscal year 2020 net income comprised $188.5 million in operating income and $193.7 million in non-operating income, including investment income of $201.8 million. The 2020 financial results compared with 2019 operating income of $155.5 million and $368.0 million in non-operating income.
"In an unprecedented year, Novant Health stayed financially healthy, which ensured we could take care of our community and our team members," said Fred Hargett, chief financial officer. "COVID-19 shut down most of our country, but Novant Health hospitals remained open to care for the sick, and our providers created new venues of care through virtual visits. The operational investments made to create that continuity of care were significant but necessary to keep our promise to our patients to make healthcare remarkable."
Consumer confidence in seeking treatment during the pandemic rose in the second half of the year, somewhat offsetting the losses experienced as operations halted in March, April and a portion of May. Excluding stimulus payments, Novant Health had an operating loss of $68.3 million for full-year 2020 compared to operating income of $188.5 million after CARES Act, and other pandemic relief stimulus is applied.
2020 operations in response to community health needs were dramatically altered by the pandemic. Within a week of the first case of coronavirus in North Carolina, Novant Health set up 13 COVID-19 testing centers that administered nearly 475,000 tests in 2020. As the Governor issued stay-at-home orders to slow the spread of COVID-19, Novant Health providers adopted virtual care options and conducted more than 700,000 virtual visits in 2020 – up from about 1,500 in 2019. Additionally, the organization stood up an online coronavirus risk-assessment that more than 150,000 people used.
The not-for-profit health system also launched an employee relief fund to assist team members struggling to pay for essential needs like housing, food, transportation, and utilities because of the pandemic. The fund, which grew to nearly $13 million, was built from a $10 million donation from Novant Health and by donations from Novant Health executives, team members, and the public. From this fund, Novant Health provided relief to more than 10,000 team members in 2020. Additionally, as schools and daycares closed due to stay-at-home orders, Novant Health paid $1.2 million for dependent childcare for team members.
Novant Health also continued to make a significant community impact in 2020. The system reported more than $1.02 billion in total community benefit (including financial assistance and unpaid cost of Medicare and Medicaid), up from $993.2 million in 2019.
Financial summary (in millions of dollars)
Investment income (loss)
Other non-operating income (expense)