This week, Novant Health told employees that their maximum retirement plan match would be reduced from 6% to 4% — effective January 1, 2027.
On Tuesday, a day before the company’s benefits website refreshed, Novant alerted employees to the change, calling the decision “difficult.”
In an email, a Novant spokesperson told WHQR, “We recognize this is a disappointing shift for team members. This decision was made after careful review of the financial pressures facing healthcare organizations nationwide, including rising labor, supply and care-delivery costs alongside ongoing reimbursement challenges.”
Messaging to employees included a little more detail, including that “reimbursement remains pressured, including from Medicare and Medicaid, which represent 63% of our revenue.” There’s a host of factors behind that, including inflation that has consistently outpaced reimbursement rates, as well as increases in the denial rate.
Novant told employees that “operating with responsible margins allows us to preserve financial flexibility and continue investing in our patients, communities, and team members,” adding that its responsibility was to steward its resources carefully.
According to a spokesperson, “even with this change, Novant Health's retirement benefits remain aligned with the nonprofit healthcare industry standard.”
Based on reporting in the Greenboro News & Record, Becker’s Hospital Review, and Novant’s own financials, the healthcare company continues to benefit from its expansionary moves, including three facilities in South Carolina. Novant’s overall revenue continues to grow, but not as fast as its operating expenses. The company’s revenue continues to exceed its costs, but the margin has dropped; Novant’s net income in Q2 of 2026 was $397.8 million, compared to $460.7 million during Q2 of 2025.
The message to employees was signed by Novant President and CEO Carl Amato, who has faced criticism in the past, including from former North Carolina Treasurer Dale Folwell, about his executive compensation package. According to Novant's IRS filings and online data, Amato's salary approached $7 million in fiscal year 2024, not including deferred compensation.
