Written by : Dr. Aishwarya Sarthe
January 16, 2025
AdventHealth and Novant Health announced revenue targets of $30 billion annually, a benchmark reached by other major nonprofit providers like CommonSpirit Health and Advocate Health following significant mergers.
Nonprofit health systems at the JP Morgan Healthcare Conference outlined ambitious plans to expand into $30 billion organizations by leveraging growing care demand and strategic mergers and acquisitions.
AdventHealth and Novant Health announced revenue targets of $30 billion annually, a benchmark reached by other major nonprofit providers like CommonSpirit Health and Advocate Health following significant mergers.
Executives highlighted strategies centered on scaling outpatient networks and acquiring facilities in high-growth regions.
AdventHealth President and CEO Terry Shaw said the organization aims to increase its operating revenue from $21 billion in 2024 to $32 billion by 2030. This growth will focus on expanding primary care and outpatient services in Florida and through mergers and acquisitions near its service areas.
“We’re making significant investments in very fast-growing markets. We have a maturing consumer connectivity model, and we’re rapidly growing our outpatient systems of care,” Shaw said during his presentation
Executives at the conference emphasized the importance of outpatient networks, citing better margins and advancements in technology that reduce inpatient care needs.
With a current revenue base of $10 billion, Novant Health has set its sights on $30 billion annual revenue through acquisitions and new construction. The North Carolina-based system is actively expanding its South Carolina footprint and broader Southern US presence.
“We can acquire other hospitals, implement our strategy, and continue to post strong financial results,” said Alice Pope, Novant’s Chief Financial Officer.
This goal mirrors aspirations previously outlined by other health systems, such as Kaiser Permanente-backed Risant Health and Advocate Aurora Health.
While some experts question the cost-saving benefits of scaling, executives maintain that achieving regional and national scale is essential to staying competitive and addressing economic challenges.
The repeated focus on $30 billion revenue targets raises questions about its significance. Health system leaders argue that scale enables cost reduction, revenue generation, and quality improvements.
However, studies indicate that size does not always translate to cost savings and may complicate operations.
Despite these challenges, health systems at the conference showcased confidence in their ability to grow through strategic investments and meet the increasing demand for outpatient services.