New report shows Novant Health boosts NC economy by more than $7 billion
Winston-Salem, N.C. (PRWEB) July 13, 2016 -- Novant Health generated more than $7 billion of economic activity (output) in the state of North Carolina in 2015, according to a recently released economic impact analysis that was commissioned by Novant Health and completed by the Center for Healthcare Economics and Policy.
“Each year, Novant Health makes a significant investment in the state of North Carolina, by offering quality health care services, products and community outreach programs to state residents and businesses,” said Carl. S. Armato, president and CEO of Novant Health. “Novant Health’s mission to improve the health of our communities, one person at a time, is not only a medical mission but an economic one. We’re proud that the jobs and investments Novant Health contributes are key economic drivers for the state of North Carolina.”
Novant Health is a driver of North Carolina employment and economic activity with 11 medical centers, nine outpatient surgery centers, 26 diagnostic imaging centers, eight outpatient rehabilitation centers and more than 400 physician clinics. These facilities provide access to care for patients throughout North Carolina, including the major metropolitan areas of Charlotte and Winston-Salem.
“As local and federal health care policies and regulations continue to evolve, it is necessary to demonstrate to residents, businesses and legislators the ways in which Novant Health contributes to North Carolina’s vibrant economic environment,” said Fred M. Hargett, chief financial officer of Novant Health. “This study illustrates Novant Health’s strong commitment to patient care, education and access for those insured, underinsured and uninsured. Despite ongoing challenges in the health care industry, Novant Health consistently delivers a significant impact to the health of our communities and the North Carolina economy.”
Economic impact was measured using data provided by Novant Health for net operating revenues, salaries, wages and benefits, and capital expenditures for construction at all Novant Health facilities in the state of North Carolina. The findings were determined utilizing input-output modeling using IMPLAN, an industry-standard software and data package for regional economic impact analysis.
Overall impact
As a key employer and contributor in the state of North Carolina, the results of the economic impact study show Novant Health supports $7.1 billion in economic activity. This figure includes more than $3.9 billion in the Charlotte-Concord combined statistical area (CSA), $2.8 billion in the Greensboro-Winston-Salem-High Point CSA and about $387 million in other portions of the state. In 2015, Novant Health also supported over 48,000 jobs and generated $834 million in tax revenues from operational and construction activities in the state of North Carolina.
Direct and secondary impacts of Novant Health’s operations contributed more than $7 billion of economic activity to the state and its spending on new construction contributed an additional $130 million of economic activity.
Jobs
In North Carolina, Novant Health directly employed 22,402 people and supported more than 48,065 jobs in 2015.
Novant Health employees in North Carolina earned a combined total of nearly $1.8 billion in salaries, wages and benefits. Through operations and construction activity, Novant Health directly and indirectly supported 25,663 jobs paying a combined total of more than $1.1 billion in salaries, wages and benefits in North Carolina in 2015..
The employment supported by Novant Health’s operations spanned several different industries, including the hospitals, physician offices and real estate industries. The estimated impact in these industries alone was an additional 25,797 jobs directly or indirectly supported by Novant Health.
Access to health care
During 2015, Novant Health directly and indirectly generated nearly $130 million in economic activity in North Carolina by investing in new construction projects, primarily to expand access to care in its communities. Of this $130 million, more than $76.5 million was in the Charlotte area and $40.4 million was in the surrounding areas of Winston-Salem and about $13 million was in other areas of the state.
New construction projects currently underway include the building of Novant Health Mint Hill Medical Center, the expansion of Novant Health Clemmons Medical Center and the construction of a replacement facility for Novant Health Charlotte Orthopedic Hospital.
Patients
In 2015, Novant Health facilities provided care for residents from each of North Carolina’s 100 counties.
Novant Health’s 11 medical centers in North Carolina provided care for over 109,000 inpatient discharges and more than 810,000 outpatient visits in 2015.
Additionally, over 1,300 physicians and about 600 advanced practice clinicians with the Novant Health medical group provided a wide range of services in 51 specialties at over 400 locations.
Community Impact
Novant Health is a major provider of charitable care and community outreach services. Novant Health’s total 2015 community benefit was about $637 million in North Carolina – one of the highest of any health care system in the state. This provision included the cost of programs serving patients, local citizens and the uninsured and underserved individuals in the community
In 2015, Novant Health provided more than $116 million in charity medical care for the uninsured – the second largest contribution by a health care system in the state. Novant Health also provided an additional $452 million of unreimbursed health services to individuals with Medicare and Medicaid coverage and patients from other government programs in North Carolina.
Novant Health also contributed $14.4 million to research; community health improvement services and benefit operations; community building activities and health professions education; and cash and in-kind contributions to community groups in North Carolina in 2015. Additionally, Novant Health subsidized $54.5 million in health services in the state during 2015 and incurred bad debt costs of more than $56 million from its operations in North Carolina.
Between 2009 and 2015, Novant Health increased its charity care spending by about 23 percent. This high growth rate is at least partially a reflection of the organization’s robust charity care policy.
Impact in Winston-Salem
Novant Health activities in the Greensboro-Winston-Salem-High Point CSA made a significant economic impact in 2015.
Overall, Novant Health operations in the CSA generated a total of about $2.8 billion in economic activity: $1.5 billion of direct output, $528 million of indirect output and $770 million of induced output. In addition, Novant Health’s operations generated an estimated $83 million in state and local tax revenue and more than $247 million in federal tax revenue.
Novant Health operations supported 19,997 jobs in a number of related industries.
Construction activity generated total economic output of $40.4 million. These activities contributed another 268 jobs, added more than $11.8 million in labor income, and are estimated to have led to more than $1 million in state and local tax revenue and more than $2.5 million in federal tax revenue.
Impact in Charlotte
In 2015, Novant Health operations in the Charlotte-Concord CSA generated about $3.8 billion in total economic activity: almost $2 billion of direct output, $841 million of indirect output and $1 billion of induced output.
In addition, the operations in the market supported 24,158 jobs, provided over $1.6 billion in labor income and are estimated to have led to more than $135 million in state and local tax revenue and almost $335 million in federal tax revenue.
Construction activity generated total economic output of $76.5 million. These activities contributed another 461 jobs, added more than $24 million in labor income and are estimated to have led to more than $2.1 million in state and local tax revenue and more than $5.1 million in federal tax revenue.
The full economic study can be found at NovantHealth.org.
About Novant Health
Novant Health is an integrated network of physician clinics, outpatient facilities and hospitals that delivers a seamless and convenient healthcare experience to communities in Virginia, North and South Carolina, and Georgia. Named in 2016 by Becker’s Hospital Review as one of the nation’s 150 best places to work in healthcare, Novant Health consists of more than 1,380 physicians and nearly 24,000 employees and provides care at 530 locations, including 14 medical centers and hundreds of outpatient facilities and physician clinics. Headquartered in Winston-Salem, North Carolina, the health system serves more than 4 million patients annually and in 2015 provided more than $706 million in community benefit, including charity care and services. IMS Health named Novant Health as one of the nation’s top 20 integrated delivery networks while Diversity MBA has recognized the organization as one of the 50 best places for women and managers of diverse background to work. Novant Health provides care in Virginia under the joint operating company, Novant Health UVA Health System.
Jennifer Garber, Novant Health, +1 704-384-5456, [email protected]
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