Operating income at Novant Health, a 14-hospital system based in Winston-Salem, N.C., fell 41 percent to $109.8 million in 2013.
That total came as operating revenue inched upward by 1 percent to $3.59 billion, giving Novant a 3.1 percent operating margin for the year. Despite the lower revenue growth, due in part to sluggish admissions seen elsewhere across the country, Novant still managed to post nearly identical total profit figures thanks to big investment gains. Novant's excess of revenues over expenses totaled about $273 million last year, down only slightly from $273.6 million in 2012.
In a news release, Novant President and CEO Carl Armato said despite the system's "challenging market," the financial results for 2013 still represented Novant's "ability to remain nimble and control costs."
Novant CFO Fred Hargett said the investment profits were a huge boon for the system, especially as hospitals will face more reimbursement cuts to Medicare and Medicaid.
"As we face continued cuts, Novant Health will work to find efficiency in our operations and provide more transparency to patients related to their financial responsibility," Mr. Hargett said. "We support transparency as a cornerstone in guiding healthcare choices and look forward to proactively providing greater clarity around pricing to our patients and consumers."
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