For Novant Health, based in Winston-Salem, N.C., 2011 was a turbulent financial year as the health system reported $1 million in net income — a dramatic decline from the $158 million in net income it reported in 2010, according to a Winston-Salem Journal report.
Novant's operating income fell to $20 million last year from $65 million in 2010. Roughly $44 million of the operating income decline was attributed to a one-time charge related to Novant's restructured partnership with Naples, Fla.-based Health Management Associates that occurred in 2009.
Novant CFO Fred Hargett said in the report that several other factors led to the health system's lower earnings. Novant lost $19 million on investments last year compared with $93 million in investment earnings in 2010; more patients postponed outpatient surgeries and other healthcare services due to lost insurance coverage and higher deductibles; and electronic health records expenses contributed to higher overall expenses.
Novant's operating income fell to $20 million last year from $65 million in 2010. Roughly $44 million of the operating income decline was attributed to a one-time charge related to Novant's restructured partnership with Naples, Fla.-based Health Management Associates that occurred in 2009.
Novant CFO Fred Hargett said in the report that several other factors led to the health system's lower earnings. Novant lost $19 million on investments last year compared with $93 million in investment earnings in 2010; more patients postponed outpatient surgeries and other healthcare services due to lost insurance coverage and higher deductibles; and electronic health records expenses contributed to higher overall expenses.
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