WS Chronicle

Novant Health generated an estimated $18.2 billion of economic activity in North and South Carolina, according to a recently released economic impact analysis commissioned by Novant Health and conducted by FTI Consulting’s Center for Healthcare Economics and Policy. The health system doubled its economic impact on the region over a five-year period – up from $9 billion in 2018.  

“This new study validates what I see in our teams every day – that our work to create a healthier future extends from our facilities into our communities,” said Carl S. Armato, president and CEO, Novant Health. “From establishing ourselves as a key employer and supporting local businesses to delivering leading-edge treatments and making care more accessible in the areas that need it most, Novant Health’s robust investments are making a difference. I’m so proud of the impact we’ve made across the region over the past five years, and I’m excited for what the next five years will bring as we continue to extend our remarkable care across the Carolinas.” 

Novant Health’s purchase of goods and services from other businesses creates a “ripple effect” of additional economic activity in the communities it serves. The study shows that more than 90,000 jobs, nearly $8 billion in labor income, and more than $18 billion in economic impact are attributable to the health system’s activities (operations and construction) in North Carolina in 2023 and in South Carolina in 2024. These impacts are seen well beyond the population centers Novant Health serves across the Carolinas, and they include industry sectors such as real estate, food and beverage services, transportation, wholesale trade and others. The study also identifies $2.2 billion in federal and state tax revenue generated by these activities. 

“Novant Health is a powerful economic engine in the regions we serve,” said Alice Pope, executive vice president and chief financial officer, Novant Health. “While we go about the business of creating healthier communities, we are also improving lives in other ways. Novant Health’s growth and investment – whether directly or indirectly – is helping to make these better places to work and live.” 

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 North Carolina in 2023 and an estimated annualized impact in South Carolina for 2024. The findings were determined using input-output modeling with the help of IMPLAN, an industry-standard software and data package for regional economic impact analysis.

Team members 

Novant Health is an important driver of employment and economic activity in the Carolinas, employing nearly 40,000 team members in an integrated network of more than 900 locations, including 19 hospitals, more than 750 physician clinics and urgent care centers, outpatient facilities, and imaging and pharmacy services. 

Through operations and construction activity, Novant Health directly employed 36,113 people and supported another 54,131 jobs across North Carolina and South Carolina, resulting in nearly $4.3 billion in salaries, wages and benefits in North Carolina in 2023. 

Novant Health has made substantial investments in the health care workforce aiming to improve the overall quality and efficacy of care, with plans to invest $10 million over the next five years to increase Wilmington’s health care workforce through scholarships, nurse training and simulation programs. 

In North Carolina, Novant Health increased its minimum wage to $17, nearly $10 more per hour than the state imposed minimum wage, impacting over 4,400 employees and totaling a $100 million investment. This increase follows previous minimum wage hikes by Novant Health over the past six years, reflecting its commitment to a living wage and investment in their communities. 

Access to care 

Beyond economic impact, the study looked at Novant Health’s role in increasing access and affordability of care. The health system’s approach has been to expand services, open new clinics and collaborate with organizations to address social determinants that hinder health care access. Some examples of increased access include the expanded surgical and procedural care options at Novant Health Pender Medical Center and opening the first Ochsner Novant Health 65 Plus clinic in South Carolina’s Hilton Head area to serve the growing elderly population. In Mount Airy, North Carolina, Novant Health opened a new spine clinic to expand surgical and nonsurgical care options for those suffering from back pain. Novant Health has also enhanced care through innovative care models such as its Hospital at Home program in coastal North Carolina and its three Novant Health Michael Jordan Family Medical Clinics. 

Patients 

In North Carolina, Novant Health facilities provide access to care for patients across the state, including 6.8 million physician clinic visits and 156,000 inpatient discharges in 2023. 

Novant Health’s operations in South Carolina include three hospitals, 27 physician clinics, 52 urgent care clinics, 20 physical therapy clinics, two ambulatory surgery centers (ASCs) and one freestanding emergency room that expand patient access to health care services. 

Community impact 

Novant Health is also a leading contributor of community benefit in North Carolina. In 2023, Novant Health invested a total of over $1.6 billion and $225 million in community benefits and financial assistance, respectively. This includes more than $1.2 billion of uncompensated care to individuals with Medicare and Medicaid coverage and patients from other government programs. In 2022, Novant Health ranked among the top health systems in North Carolina for its provision of community benefits and financial assistance.  

Impact in the Winston-Salem region 

Novant Health activities in the Winston-Salem-Greensboro-High Point metropolitan statistical areas (MSAs) made a significant economic impact in 2023. 

In 2023, net operating revenues were more than $2.5 billion for Novant Health in the region. These revenues generated $2.4 billion of direct output impact, bringing an indirect output impact of $438 million and an induced output impact of more than $535 million. The total impact on employment created by the presence of Novant Health in the region was a gain of 17,306 jobs in a number of related industries. 

Construction activity in the Winston-Salem region generated an economic impact of $216 million, in which the direct output impact was $162 million. Novant Health’s 2023 construction investments in the region contributed approximately $98 million in labor income. Similarly, Novant Health’s construction activity positively contributed to state, local and federal tax revenues.