A significant increase in operating expenses, in particularly salaries and supplies, more than offset higher core operating revenue for Novant Health Inc. during its third quarter of fiscal 2019.

The not-for-profit health system reported Tuesday having excess revenue of $23.4 million, down from $83.5 million a year ago.

Excess revenue over expenses in a not-for-profit organization, such as Novant, equates to profit in a for-profit business.

In the Triad, Novant Health owns and manages Forsyth, Clemmons, Kernersville and Thomasville medical centers as well as Medical Park Hospital in Winston-Salem. The system has 28,092 employees overall in its four-state network, including about 8,145 in Forsyth County.

Novant reported $1.32 billion in core operating revenue, up 6.8%. Novant reported $87.4 million in “other income,” compared with $74 million a year ago.

Meanwhile, operating expenses rose 10.9% to $1.23 billion.

Novant reported a $25.4 million investment gain for the quarter, compared with a $48.2 million gain a year ago. Not-for-profit hospitals depend on investment income to increase their bottom lines and to help pay for capital projects.

For the fiscal year to date, Novant reported excess revenue over expenses of $301.6 million, an increase of 45% from the same period in fiscal 2018.

The system had $3.97 billion in core operating revenue, up 0.7%. Operating expenses rose 13.1% to $3.65 billion.

It listed spending $288.8 million on capital projects for fiscal 2019 to date, compared with $245.7 million a year ago.

Novant’s report was listed at the Municipal Securities Rulemaking Board’s website, www.emma.msrb.org.

The reports are aimed primarily at bondholders and ratings agencies, and typically are submitted about two months after the end of a quarter.

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