WINSTON-SALEM, N.C., April 1, 2024 – Novant Health today announced audited financial results for the year ending Dec. 31, 2023, reporting $460.8 million of net income, or excess of revenues over expenses, on operating revenues of $8.3 billion.
The fiscal year 2023 net income included $146.8 million in operating income and $314.1 million in non-operating income. Non-operating income includes investment income of $310.8 million.
“2023 was a year of growth for Novant Health, and a strong return on our investments — representing a nearly $500 million improvement from last year — and sound management of our resources has Novant Health on solid footing as we continue,” said Geoff Gardner, senior vice president, finance, Novant Health. “We’re also pleased that we were able to make significant investments in our team members and strengthen our operational infrastructure.”
Community investments
As a not-for-profit health system, a robust financial assistance policy is a cornerstone of Novant Health’s culture and helps it care for its neighbors, regardless of their ability to pay.
In 2023, Novant Health provided more than $1.6 billion in total community benefit (including financial assistance and unpaid cost of Medicare and Medicaid).
Novant Health’s community health efforts in 2023 include expanding its fleet of Community Care Cruisers, deploying its second Community Care Cruiser in Charlotte and the first Community Care Cruiser in Wilmington. These mobile health units help improve access to primary care, preventive care, screenings and vaccines, with a focus on health equity.
Advancing care
Novant Health Presbyterian Medical Center received an upgraded Level II trauma designation, following a multiyear expansion effort to strengthen emergency care services for the greater Charlotte community.
Novant Health received numerous recognitions in 2023 for its expert patient care. U.S. News & World Report, the global authority in hospital rankings and consumer advice, named six Novant Health hospitals to its 2024 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 2023 Top Hospital awards and three ambulatory surgery centers with 2022 Top Ambulatory Surgery Center awards for outstanding quality of care. The Leapfrog group also recognized Novant Health with the most ‘As’ for patient safety in North Carolina.
Novant Health received multiple quality achievement awards from the American Heart Association for improving patient outcomes for cardiovascular and stroke care. The awards build on the numerous accreditations Novant Health has received from the American College of Cardiology.
Expanding access to care
Expanding access to care is an essential element to creating a healthier future for the communities Novant Health serves. In June 2023, Novant Health opened a new, 36-bed hospital in south Charlotte. Novant Health Ballantyne Medical Center provides access to state-of-the-art emergency and inpatient services, diagnostic and surgical care, maternity care, as well as a variety of on-site specialty care services, including women’s health, orthopedics and cancer to a rapidly growing area of south Charlotte.
In Western North Carolina, Novant Health-GoHealth Urgent Care opened three centers in Black Mountain and Asheville, giving residents of the region a direct link to Novant Health’s extensive network of high-quality healthcare centers. And Novant Health Surgical Partners in Asheville, a stand-alone surgical clinic with trusted local surgeons specializing in surgical oncology, breast, colorectal and endocrine surgery, opened its doors. The clinic also offers robotic-assisted surgery and colonoscopy.
In November 2023, Novant Health agreed to purchase three South Carolina hospitals, as well as associated physician clinics and other related hospital operations, from Tenet Healthcare Corp. The acquisition was completed in early 2024. The expansion means Novant Health now operates hospitals in Beaufort, Jasper and Charleston counties.
Other significant milestones in Novant Health’s expansion efforts included:
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Novant Health Forsyth Medical Center completed the final phase of its maternity care renovation and celebrated the structural completion of its new critical care tower, all part of an overall $400 million multiphase construction project initially launched in 2019.
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Novant Health Matthews Medical Center marked structural completion of its new four-story, 150,000-square-foot tower and 50,000-square-foot critical care tower. The project will renovate surgical services, heart and vascular, and add inpatient capacity, including a new intensive care unit.
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Kernersville Medical Center’s new heart and vascular lab means local residents have access to advanced cardiac expertise close to home. The hospital also opened a new ICU.
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Novant Health Mint Hill Medical Center broke ground on a $45 million project to double the size of its existing emergency department in response to growing community need.
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Novant Health purchased Pender Medical Center and has committed to investing $50 million within the next 10 years in building and facility improvements, new permanent medical equipment, recruitment of new healthcare professionals and the development of Pender Medical Center into a community general hospital.
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Novant Health opened its first inpatient rehabilitation unit in Charlotte designed to provide multispecialty restorative and rehab care for patients with heart failure, neurological issues or other needs.
Partnerships
Novant Health develops strategic partnerships throughout its service area to enhance and strengthen its efforts to create a healthier future.
Novant Health’s partnership with Conway Medical Center will allow Novant Health to widen access to care across the Grand Strand and Pee Dee areas of South Carolina and explore further regional growth together.
In partnership with New Orleans-based Ochsner Health, Novant Health plans to open “65 Plus” clinics across the Southeast, with Ridgeland, South Carolina, as the first site developed together (opened in early 2024). The innovative 65 Plus model for whole-person senior care is groundbreaking in the industry.
2023 financial summary (in millions of dollars)
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Operating revenues: $8,295.2
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Operating expenses: $8,148.4
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Operating income: $146.8
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Investment income: $310.8
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Other non-operating income: $3.2
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Net income: $460.8
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