Investment gains led to a monumentally profitable 2012 fiscal year for Winston-Salem, N.C.-based Novant Health, as it recorded $274 million in net income compared with $1 million in FY 2011.
Novant's $274 million in net income was broken down into three parts: $185 million of operating income, $109 million of investment income and $20 million of non-operating losses and expenses. Last year's $109 million in investment profit was a significant difference from $19 million in investment losses Novant posted in 2011.
Novant President and CEO Carl Armato said the financial gains from FY 2012 are being used to reinvest in the system to prepare for healthcare reform. For example, Novant expects its conversion from paper to electronic health records will cost $600 million when complete.
"Faced by the constant changes in the healthcare industry, our net income provides the foundation needed to invest in our ongoing commitment to providing excellent patient care," Mr. Armato said in a news release. "As a not-for-profit organization, we utilize our income to invest in advancing technologies and medical innovations, as well as to expand access to services to meet the ongoing needs of patients and our communities."
Novant's $274 million in net income was broken down into three parts: $185 million of operating income, $109 million of investment income and $20 million of non-operating losses and expenses. Last year's $109 million in investment profit was a significant difference from $19 million in investment losses Novant posted in 2011.
Novant President and CEO Carl Armato said the financial gains from FY 2012 are being used to reinvest in the system to prepare for healthcare reform. For example, Novant expects its conversion from paper to electronic health records will cost $600 million when complete.
"Faced by the constant changes in the healthcare industry, our net income provides the foundation needed to invest in our ongoing commitment to providing excellent patient care," Mr. Armato said in a news release. "As a not-for-profit organization, we utilize our income to invest in advancing technologies and medical innovations, as well as to expand access to services to meet the ongoing needs of patients and our communities."
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