LAKE NORMAN OF CATAWBA, N.C. — On Feb. 28, 2023, Novant Health announced it had reached an agreement to acquire Lake Norman Regional Medical Center and Davis Regional Medical Center, as well as the related physician clinics and outpatient facilities, as part of a deal with Tennessee-based for-profit health system Community Health Systems, Inc.
Novant Health said it would aim to restore the Level II NICU at Lake Norman Regional and enhance interventional cardiac catheterization capabilities at Lake Norman Regional, in addition to other planned improvements.
However, the Federal Trade Commission (FTC) is now suing to block that acquisition.
The FTC issued a complaint, alleging the $320 million proposed deal could potentially lead to an increase in prices and reduce incentives to invest in quality care.
“Hospital consolidations often lead to worse outcomes for nurses and doctors, result in higher prices, and can have life and death consequences for patients,” Henry Liu, Director of the FTC’s Bureau of Competition, said.
The FTC said Novant currently serves more patients than any other hospital in the Eastern Lake Norman Area and is one of the largest regional hospital systems, arguing the acquisition of facilities close to its existing facility would allow the hospital system to "control nearly 65% of the market for inpatient general acute care services" in Iredell County and northern Mecklenburg County.
Further, the FTC believes this move would allow Novant to increase its rates and could lead to an increase in annual health care costs.
“There is overwhelming evidence that Novant’s deal with Community Health Systems will be detrimental to patients in the Eastern Lake Norman Area, including leading to higher out-of-pocket costs for critical health care services," Liu said.
The FTC said it would be filing the federal court complaint and request for preliminary relief with the U.S. District Court for the Western District of North Carolina in order to halt the transaction until an administrative proceeding can take place.
A Novant Health spokesperson shared the following statement with WCNC Charlotte:
"As a nationally recognized leader in quality and patient safety, Novant Health is committed to delivering the highest-quality, patient-centered, physician-directed care to the communities served by Lake Norman and Davis Regional Medical Centers. As we keep that commitment across North Carolina, including throughout the Greater Charlotte area, we will pursue available legal responses to the FTC’s flawed position announced today. We remain confident that Novant Health can bring exceptional care, leading-edge innovation, and long-term stability to Lake Norman and Davis Regional Medical Centers."