Writer: Joshua Andino
2 min read March 2023 — Novant Health has agreed to buy Lake Norman Regional Medical Center and Davis Regional Medical Center as well as their related businesses from Franklin, TN–based Community Health Systems.
The agreement, signed Tuesday, is expected to close by the end of the year pending regulatory approvals, and includes the purchase of the hospital’s related businesses, including physician clinic operations and outpatient services
“Our shared commitments to the community will continue to anchor our efforts and plans as we deliver exceptional, patient-centered experiences; protect safety and quality; improve community health; and promote equitable access to care,” said Carl S. Armato, president and CEO of Novant Health in a press release. “This unique and exciting opportunity to extend Novant Health’s regional delivery network to new communities also creates opportunities for medical education, research and innovation.”
The acquisition is the latest iteration of the ongoing consolidation happening throughout the healthcare industry. Hospitals and hospital systems continue to compete for market share, arguing that it helps lower prices for customers, yet the opposite seems to be the case, according to a recent UPenn LDI virtual seminar.
In North Carolina, Novant is the second largest healthcare provider in the state, trailing only Atrium Health, which is currently engaged in the development of The Pearl Innovation District and completed a combination of its own with Advocate Aurora Health at the end of last year.
Novant currently employs over 1,800 physicians and 35,000 employees across nearly 800 locations between the Carolinas and Georgia, including medical centers, physician clinics, and other outpatient facilities. Meanwhile the publicly-traded Community Health Systems operates 79 hospitals across 16 states, totalling over 13,000 beds and other sites of care, making it one of the largest healthcare companies in the country.
The hospitals Novant is in the process of acquiring are some of the largest in North Carolina. Lake Norman Regional hosts 123 licensed beds, making it the state’s 20th largest hospital and has served Iredell County since 1926. Davis Regional’s 144 beds land it the no. 17 spot. The hospital is also experiencing a shift of its own, converting to an inpatient behavioral health services hospital away from general acute care, according to its website.
Novant will continue to work with those currently employed at the hospitals.
“Novant Health has a demonstrated commitment to delivering quality care to the patients they serve across the communities they serve,” said Matthew Littlejohn, chief executive officer of Lake Norman Regional Medical Center and Davis Regional Medical Center in the release. “Our tradition of serving the community with medical services close to home will be enhanced thanks to the dedication and skill of our medical staff and employees.”
The acquisition is Novant’s latest expansion, having purchased over 60 acres in Steel Creek to build a new 32-bed medical center alongside two operating rooms. The 186,000-square-foot center is expected to open in 2025, and cost $178.5 million.
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