WINSTON-SALEM, N.C. – Novant Health today announced audited financial results for the year ending Dec. 31, 2021, reporting $812 million of net income, or excess of revenues over expenses, on operating revenues of $7.4 billion.
The fiscal year 2021 net income comprised $369 million in operating income and $443 million in non-operating income. Novant Health’s investment returns of $452.8 million helped the health system weather continued COVID-19 impacts and allowed for increased investments in team members, innovation initiatives and capital fund projects.
The not-for-profit health system experienced significant operational changes, including its partnership with Novant Health New Hanover Regional Medical Center in February 2021 and the sale of Novant Health’s Virginia operations to UVA Health in July 2021, making it difficult to determine direct comparisons to 2020 financial results.
“Despite adapting to the ever-changing demands COVID-19 dealt Novant Health for a second year, the system remained financially strong. A diverse and solid investment portfolio, combined with less overall market volatility contributed to a robust, record investment return,” said Fred M. Hargett, Novant Health executive vice president and chief financial officer. “More significant was Novant Health’s investment in our team members, totaling more than $300 million in 2021 alone. We believe our business is caring for all people, starting with our team members.”
Investing in communities
Novant Health continued to make a significant community impact in 2021, reporting more than $1.1 billion in total community benefit (including financial assistance and unpaid cost of Medicare and Medicaid). In 2020, community benefit totaled $1.0 billion, not including the contributions of New Hanover Regional Medical Center.
In 2021, Novant Health community engagement contributed more than $6.9 million in charitable contributions to more than 80 community partners in Charlotte and Winston-Salem that offer community-based health and human services along with programs aimed at improving the community’s well-being.
Investing in team members
In 2021, Novant Health invested more than $300 million in team members through salary increases, benefits, bonuses and incentives.
With New Hanover Regional Medical Center’s integration with Novant Health, Novant Health extended its $15 per hour healthy community wage to all eligible team members. The roughly $3 million investment directly supports more than 1,100 team members and their families in the coastal region.
Recognizing the ongoing toll the pandemic has had on team members, Novant Health expanded its Thriving Together initiative, launched in May 2020, to offer services and resources to help team members with financial, physical, mental and emotional wellness, as well as opportunities for leadership and professional development. These resources are in addition to the support programs available through the Novant Health Employee Assistance Program and spiritual care team guidance and resources.
Novant Health also continued its relief fund to assist team members struggling to pay for essential needs because of the pandemic. The Hope for Remarkable Team Aubergine Fund has paid out $11.6 million since 2020, providing relief to nearly 13,000 team members, with $3.7 million paid out to nearly 2,000 team members in 2021 alone. In 2021, the fund also provided ongoing funding for dependent child care when schools and day cares were closed.
Novant Health continually invests in and analyzes workplace flexibility and additional well-being resources for team members to retain and recruit team members based on market demands. Recognized for a strong culture, Diversity MBA Magazine ranked Novant Health first in the nation in 2021 for “Best Places for Women & Diverse Managers to Work.” Diversity MBA is a national leadership organization integrating diversity and inclusion with talent management.
Advancing care
As a result of significant clinical research investments, the Novant Health Cancer Institute began first-in-human clinical trials in 2021, enrolling the world’s first patient in a trial evaluating a new drug for treatment of non-Hodgkin’s lymphoma. Additionally, the Food and Drug Administration granted approval to nearly 60 novel drugs and therapeutic agents for cancer in 2021; the Novant Health Cancer Institute and clinical research team worked with nearly half of the agents involved in these breakthrough approvals, advancing healing for patients across the region.
Novant Health also invested in precision radiation oncology, becoming the first health system in the region to offer HyperArc radiosurgery. HyperArc technology allows for the treatment of multiple tumors simultaneously, reducing treatment time by nearly 50%.
System growth in North Carolina
2021 marked record expansions, partnerships and investments in future growth for Novant Health, including the announcement of an additional $222 million to develop a state-of-the art critical care tower at Novant Health Forsyth Medical Center in Winston-Salem; groundbreaking for Novant Health Ballantyne Medical Center, a $180 million investment, bringing acute care resources with the new facility to south Charlotte; groundbreaking on a $55 million expansion project, including adding inaugural maternity care services at Novant Health Kernersville Medical Center in Kernersville; the announcement of a $169 million new bed tower expansion at Novant Health Matthews Medical Center in Matthews; and a partnership with Walgreens, bringing care to three of Walgreens’ retail stores in Charlotte, Leland and Winston-Salem.
COVID-19 response
Pandemic surges generated various impacts throughout 2021, including a pause in certain operations due to the delta variant.
In September 2021, Novant Health launched COVID Care at Home, a digital program designed to help relieve pressure on acute care facilities, prevent or detect earlier the need for readmission and provide better continuity of care for patients. COVID Care at Home identifies patients undergoing COVID-19 treatment who may safely transition to home care, discharging them with on-demand virtual care follow-up appointments and in-home support. (New Hanover Regional Medical Center launched a similar program in 2020.) COVID Care at Home has served more than 150 patients since September 2021 across the system.
Novant Health conducted more than 521,000 virtual care visits in 2021.
To date, more than 35,000 Novant Health patients went home after recovering from COVID-19 and the healthcare system administered more than 600,000 doses of the COVID-19 vaccine across all markets, which represents nearly 300,000 people who are fully vaccinated and more than 57,000 people who are fully vaccinated and boosted. Novant Health staffed more than 100 community vaccination events, activating more than 3,000 volunteers in addition to team members to administer doses. Novant Health has also administered more than 845,000 COVID-19 tests.
2021 financial summary (in millions of dollars)
- Operating revenues: $7,396.1
- Operating expenses: $7,027.1
- Operating income: $369.0
- Investment income (loss): $452.8
- Other non-operating income (expense): $(9.8)
- Net income: $812.0
Subscribe