WINSTON-SALEM, N.C. – Novant Health today announced audited financial results for the year ending Dec. 31, 2022, reporting $222.8 million of net losses on operating revenues of $7.6 billion.
The fiscal year 2022 net income was comprised of $68.2 million in operating income and $291.0 million in non-operating losses. Novant Health reported an investment loss of $251.1 million, which compares to 2021 investment income of $452.8 million.
“Record inflation driving increased expenses, contract labor needs and costs, decreased investment income and surges from COVID-19, flu and RSV, 2022 brought many challenges for Novant Health,” said Fred M. Hargett, Novant Health executive vice president and chief financial officer. “We met these challenges and continue to evaluate how we can be the best stewards of resources to carry us forward and ensure our team members are cared for and our communities receive remarkable care.”
Community investments
A not-for-profit health system, Novant Health exists to improve the health of its communities, one person at a time. A robust financial assistance policy is a cornerstone of Novant Health’s culture and helps it care for all members of the communities served, regardless of their ability to pay.
In 2022, Novant Health provided more than $1.5 billion in total community benefit (including financial assistance and unpaid cost of Medicare and Medicaid). In 2022, Novant Health community engagement contributed more than $1.9 million in charitable contributions to community partners in Charlotte, Winston-Salem and Wilmington that offer community-based health and human services.
Advancing care
Novant Health received several recognitions in 2022 for its leading patient care. U.S. News & World Report, the global authority in hospital rankings and consumer advice, named six Novant Health hospitals – Novant Health Forsyth Medical Center, Novant Health Huntersville Medical Center, Novant Health Matthews Medical Center, Novant Health New Hanover Regional Medical Center, Novant Health Presbyterian Medical Center and Novant Health Rowan Medical Center – to its 2023 list of High Performing hospitals for Maternity Care. This is the highest award a hospital can earn for U.S. News’ Best Hospitals for Maternity Care.
The Leapfrog Group, a national nonprofit that evaluates the safety and patient experience provided by hospitals across the country, recognized six Novant Health hospitals with 2022 Top Hospital awards and two ambulatory surgery centers with 2022 Top Ambulatory Surgery Center awards for outstanding quality of care. The Leapfrog group also recognized Novant Health with nine “A” Hospital Safety Grades.
Novant Health Presbyterian Medical Center earned a three-year accreditation from the National Accreditation Program for Rectal Cancer, a quality program of the American College of Surgeons. Presbyterian Medical Center is the first in the region and second health system in the state to obtain this accreditation.
The American Heart Association awarded Novant Health multiple recognitions for its continued commitment to quality and efficient care for cardiovascular patients, resulting in shorter recovery times and fewer hospital readmissions. The American College of Cardiology also awarded Novant Health New Hanover Regional Medical Center with Heart Failure Accreditation with Outpatient Services for its demonstrated expertise and commitment in treating patients with heart failure.
System growth
Expanding access to care is an essential element of Novant Health’s mission and in 2022 it continued to plan for new facilities. This includes the future Scotts Hill Medical Center and a medical office building under construction on the campus of Novant Health Brunswick Medical Center.
Growth and increased access to care also included finalizing joint ownership of HealthTeam Advantage, expanding reach to Medicare beneficiaries.
Efforts continued to improve and expand access to care in local markets, including breaking ground on a $169 million expansion of Novant Health Matthews Medical Center to include a four-story, 150,000-square-foot tower and 50,000-square-foot renovation project. Also breaking ground in the Charlotte area, a $15 million investment project, the Novant Health Agnes Binder Weisiger Breast Health Center that will expand the current breast health center to 13,500-square-feet and function as a brand-new, stand-alone and comprehensive breast health center. The Novant Health Foundation is contributing $5 million to the new center, with the goal to ensure that all patients in and around Charlotte have equitable access to breast health services.
Structural completion was reached early in 2022 at the new Novant Health Ballantyne Medical Center and Medical Office Building, marking the project’s midpoint. Once complete in 2023, the $154 million investment will bring acute care resources to the growing suburban population in south Charlotte through a 216,236-square-foot state-of-the-art medical facility.
Construction also began on a new five-story, 193,000-square-foot critical care tower at Novant Health Forsyth Medical Center, part of a $400 million multiphase project launched in 2019 with phase 1 plans underway to enhance the women’s and children’s center, renovate the hospital's main kitchen and cafeteria, install a new central energy plant and modernize existing patient rooms.
Pediatric specialty care access increased in Wilmington with the addition of new physicians in partnership with UNC Health. New specialty services include pediatric urology, pediatric rheumatology and pediatric nephrology, and expanded services include pediatric cardiology, pediatric gastroenterology and pediatric hematology.
COVID-19, flu and RSV response
2022 marked the third year of the COVID-19 pandemic response in which Novant Health completed more than 1.62 million virtual care visits. To date, more than 48,000 Novant Health patients have returned home after recovering from COVID-19 and the health system administered more than 643,000 doses of the COVID-19 vaccine across all markets. The fourth quarter brought a “tripledemic” of COVID-19, flu and RSV cases to all Novant Health facilities, generating another surge and stress on system resources and team members.
Innovation investments
Novant Health created an even stronger foundation for innovation enablement by creating Novant Health Enterprises. An incubator, Novant Health Enterprises enables partnerships with other health care organizations while creating diversified growth and generating value for Novant Health’s core business.
2022 financial summary (in millions of dollars)
- Operating revenues: $7,552.1
- Operating expenses: $7,483.9
- Operating income: $68.2
- Investment income (loss): $(251.1)
- Other non-operating income (expense): $(39.9)
- Net income (loss): $(222.8)
Subscribe