Norton rides investment gains to big 2016 surpluses
Norton Healthcare in Kentucky saw strong investment gains, an area that has helped other health systems score earnings wins for the year.
Norton, a five-hospital, not-for-profit system, had the strongest earnings in 2016 among the four main competitors in Louisville, including the University of Louisville Hospital, Baptist Health and KentuckyOne.
Operating income slipped slightly for the year, according to the system's financial disclosures. Norton posted operating income of $125.3 million on revenue of $2.1 billion compared with operating income of $130.2 million in 2015 on revenue of $2 billion.
Investment income, however, increased to $23.3 million in 2016 compared to an investment loss of $36 million in 2015. Taken together with other non-operating income, Norton posted a higher net surplus in 2016.
Adam Kempf, Norton senior vice president of finance, said financial markets generally were a little stronger in 2016 giving rise to better investment income for the system.