Fiscal year 2016 was a strong year for National Jewish Health, with continued financial success. Net patient service revenue grew 11 percent in 2016 to $145 million. Patient demand remains strong, and National Jewish Health continued to expand services in order to meet demand. New clinicians were recruited in allergy/immunology, pulmonology, oncology, gastroenterology and, for the first time on campus, general surgery. In addition, we continue to provide pediatric allergy, immunology and pulmonology services at Rocky Mountain Hospital for Children. In total, patient encounters grew 16 percent on campus and 39 percent at our numerous off-site locations.
The 2016 fiscal year was the second year of our joint operating agreement with Saint Joseph Hospital and SCL Health in Colorado. Over the past two years, the joint programs have grown and matured. Now, a substantial number of our patients receive inpatient care under the close supervision of our specialists in a new inpatient facility. Our patients benefit from the convenience of having access to surgeons and other specialists on the National Jewish Health campus. Also in its second year, The Mount Sinai − National Jewish Health Respiratory Institute with the Icahn School of Medicine continues to grow, with double-digit increases in clinic visits and two new large, joint research grants. These joint operating agreements benefit both our mission and our finances. Combined, these ventures generated $4.9 million of new, net operating revenue.
In a continued effort to diversify our research program and expand our future funding opportunities, new researchers were recruited during the year in genetics, pulmonology and pediatrics. Though grant expenditures were down for the year, total grant awards increased year over year by more than 8 percent, including a new $10 million U.S. Department of Defense grant for the treatment of deployment-related lung injury. Expenditures on this grant will begin in 2017.
Due largely to the cost of pharmaceuticals, new recruitment and general inflation, expenses increased 4 percent year over year. The investment markets were adverse most of the year. In total, a loss of $3 million was recorded, reflecting $8.5 million in unrealized losses, offset by $5.5 million in realized investment returns.
With the help of our loyal donors, fundraising completed another successful year, raising $29.3 million. These funds are crucial for our future, helping us to build new facilities, to recruit the brightest new physicians and to continue our mission of charity care, education and research.
Overview of Revenue and Expenditures