News & Media

Novant Health’s $320M Deal to Acquire Two NC Hospitals Back On

By Daniel Finnegan – Managing Editor, Triad Business Journal

A federal judge in Charlotte has cleared the way for Novant Health’s $320 million deal to acquire two hospitals in the region from subsidiaries of Community Health Systems Inc. (NYSE: CYH).

U.S. District Judge Kenneth Bell denied the Federal Trade Commission’s bid for an injunction blocking Novant from acquiring the 123-bed Lake Norman Regional Medical Center in Mooresville and the 146-bed Davis Regional Medical Center in Statesville.

The deal was announced in March 2023, but the FTC sued Novant in January to try to block the sale. It then filed for a preliminary injunction in March of this year, contending the sale would “irreversibly consolidate the market for hospital services.”

But Bell disagreed.

“Having weighed the equities and considering the [FTC]’s likelihood of ultimate success, the Court concludes that entry of an injunction pending the conclusion of the FTC’s administrative process would not be in the public interest,” the judge wrote in his order.

The sale is stlll subject to an administrative review process that could last more than two years — and include appeals — but that didn’t dim Novant’s reaction to the ruling.

“We are thrilled that the federal court recognized the additional benefits Novant Health will bring to the people served by Lake Norman and Davis Regional Medical Centers,” said Carl Armato, president and CEO of Novant Health, in a statement. “This outcome is a victory for the area, and our plan to deliver on the commitments we’ve made begins now.

Read more here..