Healthcare system generates more than 55,000 jobs and over $959 million in tax revenues in the state
WINSTON-SALEM, N.C. – Novant Health generated more than $9 billion of economic activity (output) in the state of North Carolina in 2018, according to a recently released economic impact analysis that was commissioned by Novant Health and conducted by FTI Consulting’s Center for Healthcare Economics and Policy.
“Novant Health has significantly invested in the state of North Carolina for more than 20 years by offering quality health care services, products and community outreach programs to state residents and businesses,” said Carl S. Armato, president and CEO of Novant Health. “We are proud that our mission to improve the health of our communities, one person at a time, includes a focus on the economic vitality in the areas we serve. The jobs and investments Novant Health contributes are key economic drivers for the state of North Carolina.”
Novant Health is a driver of North Carolina employment and economic activity with 12 medical centers, nine outpatient surgery centers, 26 diagnostic imaging centers, eight outpatient rehabilitation centers and more than 530 physician clinics. These facilities provide access to care for patients throughout North Carolina, including the major metropolitan areas of Charlotte and Winston-Salem.
“While the pace of change continues in state and federal regulations, Novant Health remains dedicated to investing in North Carolina’s economy,” said Fred M. Hargett, executive vice president and chief financial officer, Novant Health. “This study illustrates Novant Health’s commitment to investing in communities. We have taken great strides to increase access to care for all patients through convenient locations and our investment in digital products and new technologies.”
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.
Overall impact
As a key employer and contributor in the state of North Carolina, the results of the economic impact study show Novant Health supports $9 billion in economic activity, which includes $8.7 billion from operations and another $340 million from spending on new construction. This figure includes more than $4.9 billion in the Charlotte-Concord combined statistical area (CSA), $3.5 billion in the Greensboro-Winston-Salem-High Point CSA and about $600 million in other portions of the state. In 2018, Novant Health also supported over 55,000 jobs and generated $959 million in tax revenues from operational and construction activities in the state of North Carolina.
Jobs
Through operations and construction activity, Novant Health directly and indirectly supported 55,760 jobs resulting in nearly $3.7 billion in salaries, wages and benefits in North Carolina in 2018. In the state, Novant Health directly employed 23,843 people paying a combined total of nearly $2.1 billion in salaries, wages and benefits.
The employment supported by Novant Health’s operations spanned several different industries, including the hospitals, physician offices and real estate industries.
Access to health care
During 2018, Novant Health directly and indirectly generated nearly $340 million in economic activity in North Carolina by investing in new construction projects, primarily to expand access to care in its communities. These construction projects include several large capital projects in the Charlotte CSA, such as the completion of Novant Health Mint Hill Medical Center; construction of John M. and Claudia W. Belk Heart & Vascular Institute/Edward I. and Agnes B. Weisiger Cancer Institute; expansion of Novant Health Huntersville Medical Center; and renovation of Novant Health Presbyterian Medical Center.
Patients
In 2018, Novant Health facilities provided care for residents from each of North Carolina’s 100 counties.
Novant Health’s 12 medical centers in North Carolina provided care for over 117,000 inpatient discharges and more than 890,000 outpatient visits in 2018.
Additionally, over 1,500 physicians and about 900 advanced practice clinicians with the Novant Health Medical Group provided a wide range of services in 51 specialties at over 500 locations. In 2018, there were over 4.8 million patient encounters at clinic sites in North Carolina.
Community impact
Novant Health is a major provider of charitable care and community outreach services. Novant Health’s total 2018 community benefit was about $797 million in North Carolina – one of the highest of any health care system in the state. This provision included the cost of programs serving patients, local citizens, and the uninsured and underserved individuals in the community
In 2018, Novant Health provided more than $131 million in charity medical care for the uninsured – the second largest contribution by a health care system in the state. Novant Health also provided an additional $606 million of unreimbursed health services to individuals with Medicare and Medicaid coverage and patients from other government programs in North Carolina.
Novant Health contributed $27.3 million to: research; community health improvement services and benefit operations; community building activities and health professions education; and cash and in-kind contributions to community groups in North Carolina in 2018. Additionally, Novant Health subsidized $32.6 million in health services in the state during 2018.
Between 2013 and 2018, Novant Health increased its charity care spending by about 15%. This high growth rate is at least partially a reflection of the organization’s robust charity care policy.
Impact in Winston-Salem
Novant Health activities in the Greensboro-Winston-Salem-High Point CSA made a significant economic impact in 2018.
Overall, Novant Health operations in the CSA generated a total of about $3.5 billion in economic activity: $1.8 billion of direct output, $683 million of indirect output and $967 million of induced output. In addition, Novant Health’s operations generated an estimated $112 million in state and local tax revenue and more than $322 million in federal tax revenue.
Novant Health operations supported 22,343 jobs in a number of related industries.
Construction activity generated total economic output of $45 million. These activities contributed another 305 jobs, added more than $15.2 million in labor income, and are estimated to have led to approximately $1.4 million in state and local tax revenue and nearly $3.2 million in federal tax revenue.
Impact in Charlotte
In 2018, Novant Health operations in the Charlotte-Concord CSA generated about $4.6 billion in total economic activity: almost $2.4 billion of direct output, $1 billion of indirect output and $1.2 billion of induced output.
In addition, the operations in the market supported 27,235 jobs, provided over $1.9 billion in labor income and is estimated to have led to more than $141 million in state and local tax revenue and almost $409 million in federal tax revenue.
Construction activity generated total economic output of $274 million. These activities contributed another 1,649 jobs, added more than $102 million in labor income and are estimated to have led to more than $8.3 million in state and local tax revenue and more than $20 million in federal tax revenue.
The full economic impact study can be found here.
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