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Health system drops $320M plan to buy 2 North Carolina hospitals

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Health system drops 0M plan to buy 2 North Carolina hospitals


Just two weeks after Novant Health secured a legal victory in its bid to buy two North Carolina hospitals, another court ruling has spurred the health system to abandon its plans.

Novant Health has dropped its bid to buy Lake Norman Regional Medical Center, above, and Davis Regional Medical Center from Community Health Systems. The FTC secured an injunction from a federal appeals court.

Novant had planned to buy two facilities from Community Health Systems in a $320 million deal, but the Federal Trade Commission has been working to block the acquisition. On Tuesday, the U.S. Court of Appeals for the Fourth District narrowly granted the FTC’s petition for an injunction, delaying the deal.

With the deal being stalled, Novant Health announced Tuesday that it was abandoning its plans to buy Lake Norman Regional Medical Center and Davis Regional Medical Center, The Charlotte Observer and other media outlets reported.

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“Despite our vision to restore services the area has lost and deliver high quality, remarkable care, we have been met with opposition from the Federal Trade Commission at every step,” Novant said in a statement. “We are steadfast in our belief that these facilities and their patients would have greatly benefited from joining Novant Health, but with the FTC’s continued roadblocks we do not see a way to finalize this transaction.”

The appeals court ruled 2-1 in favor of the FTC’s move for an injunction. The brief opinion from the majority states “the court grants the motion and enjoins the acquisition of Lake Norman Regional Medical Center by Novant Health, Inc. pending appeal.”

In his dissenting opinion, Judge J. Harvie Wilkinson III cited a federal district judge’s argument that the deal would benefit the public.

“The district court was not wrong to think the public interest would be facilitated by helping these hospitals find the financial infusion they need to survive,” Wilkinson wrote.

Wilkinson also noted that allowing the matter to return to additional FTC review and an administrative law judge would possibly delay the transaction by more than two years.

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“Hospitals such as Davis and Lake Norman Regional may not provide a full menu of advanced procedures, but they do tend to increase access to vital healthcare for underserved populations,” Wilkinson wrote. “I am reluctant to place all this in jeopardy.”

Novant’s decision represents a remarkable reversal from the court victory earlier this month, which buoyed the health system’s efforts to buy the hospitals. Novant hailed that earlier ruling as “a victory for the area” and pledged to expand more services for patients when the deal was finalized.

Novant argued that the sale should move forward because if the transaction falls apart, it’s possible that Davis Regional would close. CHS closed the hospital in 2022 for financial reasons and converted it into a behavioral health facility.

In his ruling issued earlier this month, U.S. District Judge Kenneth Bell cited the prospect of Davis Regional’s closing, and Novant’s pledges to expand care and services for patients.

The FTC has argued that if Novant was allowed to purchase the hospitals, consumers would see higher prices and could lose services since there would be reduced competition. Federal regulators said the deal would give Novant nearly 65% of the market for inpatient acute care in North Carolina’s Eastern Lake Norman area.

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In the district judge’s ruling earlier this month, Bell wrote that there would be sufficient competition in the region. Bell noted that Atrium Health, part of Advocate Health, is building a new hospital near Lake Norman, a fast-growing area in the Charlotte region.

Novant expressed disappointment in the appeals court ruling that granted the FTC an injunction delaying the transaction. The health system said it had “worked tirelessly for more than a year to create a path forward for Lake Norman Regional Medical Center and Davis Regional Medical Center.”

“The communities served by these facilities deserve better than the fate they’ve been dealt by the FTC so we will look for other ways to support patients and clinicians in these communities,” Novant said in its statement Tuesday.

Novant, which operates 19 medical centers and more than 850 healthcare sites, has been expanding recently. In February, Novant completed the $2.4 billion purchase of three South Carolina hospitals from Tenet Healthcare Corp.

Federal regulators have applied more scrutiny to hospital mergers under President Biden’s administration. Some hospitals have pulled the plug on planned deals due to FTC opposition.

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John Muir Health had planned to purchase San Ramon Regional Medical Center from Tenet Healthcare Corp. last year. But shortly after the FTC sued to block the deal, the systems dropped their plans.

In addition, SUNY Upstate Medical University dropped its plans to acquire Crouse Health System in Syracuse, N.Y. last year, following the FTC’s objections to the deal.



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North Carolina

North Carolina GOP's legislative priorities for this year inch closer to becoming law

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North Carolina GOP's legislative priorities for this year inch closer to becoming law


North Carolina GOP lawmakers are one step closer to rolling out their legislative-session priorities into law before the year’s end after the state House opted to override one of Democratic Gov. Roy Cooper’s vetoes on Tuesday.

The vetoed bill contains significant funding for private school scholarship grants and a law compelling local sheriffs to comply with U.S. Immigration and Customs Enforcement — two issues that Republican leaders have repeatedly emphasized throughout this year’s session. The House’s override, which took place largely along party lines, is part of the General Assembly’s multiday session this week that includes work such as providing more relief to western North Carolina communities still grappling with Hurricane Helene’s aftermath.

About $463 million will go toward the state’s Opportunity Scholarship program under the legislation. It also includes $160 million to address enrollment growth in K-12 public schools and community colleges.

Most House Democrats railed against the private school scholarships and called on Republicans to focus on funding public schools and Helene recovery efforts. In a letter to lawmakers on Monday, Cooper, who is term-limited and leaves office come January, urged GOP legislators to do the same.

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“The economy of Western North Carolina needs an infusion of funding now, not months from now,” he said in the letter.

But Republicans say the legislation is necessary to quell lengthy waitlists. Last year, the GOP-controlled General Assembly removed income caps for the Opportunity Scholarship program, which led to skyrocketing demand and 55,000 waitlisted children. Both legislative chambers eventually agreed on a spending deal — the bill Cooper vetoed — in September to eliminate the state’s waitlist.

“We do not need to set up a false choice between hurricane relief and public school funding and funding for the Opportunity Scholarship program,” Mecklenburg County Republican Rep. Tricia Cotham said in support of the bill.

A woman holds a sign in protest of the North Carolina House’s scheduled override of Democratic Gov. Roy Cooper’s veto at the North Carolina Legislative Building in Raleigh, N.C., on Tuesday, Nov. 19, 2024. (AP Photo/Makiya Seminera)

The bill also incorporates language to force North Carolina sheriffs to comply with ICE detainers — requests to hold inmates believed to be in the country illegally — and notify federal immigration agents. Under the new law, those inmates would be held up to 48 hours under a judicial official’s order so they can be picked up by ICE agents.

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The legislation comes on the back of President-elect Donald Trump’s electoral victory earlier this month. His campaign stressed illegal immigration as a safety issue and promised mass deportations during his second term — which was referenced during House debate as a reason to support the bill.

“I hope you will take into consideration the overwhelming opinion shown by the voters again of this state and country in this past national election,” Caldwell County Republican and bill sponsor Rep. Destin Hall said.

Opponents to the bill, such as several advocates at an Every Child NC news conference earlier on Tuesday, voiced concern that the law would unfairly target immigrant communities in North Carolina.

“HB 10 is extremely harmful for the undocumented community, and especially children who are attending our public schools here, going to school in fear that their parents might be detained,” said Brandy Sullivan, Southern Wake Liberal Ladies co-founder and a naturalized citizen from Mexico.

The Senate also needs to override Cooper’s veto to have the legislation go into effect.

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NC House Republicans hold elections for new speaker

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NC House Republicans hold elections for new speaker


Tuesday, November 19, 2024 2:11PM

NC House Republicans hold elections for speaker

North Carolina House Republicans will hold elections for speaker and the rest of the incoming leadership team.

RALEIGH, N.C. (WTVD) — North Carolina House Republicans will hold elections for speaker and the rest of the incoming leadership team.

It comes after current speaker, Tim Moore, announced he would not return for a 12th term in the chamber.

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Moore won his election to the U.S. House of Representatives.

The vote on new leadership is happening the same time as Governor Cooper’s veto of House Bill 10 is expected to be overridden by Republican state lawmakers Tuesday afternoon.

Copyright © 2024 WTVD-TV. All Rights Reserved.



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Vigil held to protest expected veto override of North Carolina immigration bill HB 10

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Vigil held to protest expected veto override of North Carolina immigration bill HB 10


RALEIGH, N.C. (WTVD) — A vigil was held outside the state legislature to protest HB 10 — the bill changing the laws on how North Carolina’s sheriffs will need to process undocumented people that they’ve arrested.

That bill, vetoed by Governor Cooper in September, is expected to be overridden by the state’s Republican supermajority this week.

The vigil came just hours after President-elect Donald Trump took to social media, confirming that he would declare a national emergency and use the military to carry out the mass deportations he promised along the campaign trail.

“Where there is injustice we will stand, we will push back,” said Ana Ilarazza-Blackburn, founder of Women Leading Together and an organizer for El Colectivo.

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Ilarazza-Blackburn’s been a vocal critic of HB 10 and made the drive up to Monday’s event from Moore County. She said she was stunned by the President-elect’s post about a national emergency on social media.

“It blows my mind. I never thought our country would come to this,” she said.

HB 10 would require North Carolina Sheriffs to follow new protocols should they learn someone who they’ve arrested is undocumented. It requires those sheriffs — once a court order has been issued — to keep those undocumented people in custody until federal agents from ICE can step in. It’s a law that advocates in the immigrant community say will devastate trust among North Carolina’s Latino community.

“What humane, civilized society targets at a community that has helped build them? Where’s the empathy for that and where’s the moral in that?” asked Ilarraza-Blackburn.

Willie Rowe and Clarence Birkhead, Sheriffs of Wake and Durham counties respectively, have publicly spoken out against HB 10 — arguing it takes away their ability to determine how to best serve their communities. Neither sheriff was available to comment for this story.

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Conversely, the North Carolina Sheriffs’ Association supports the latest version of HB 10, saying:

“The Association appreciates the legislature for its willingness not to impose onerous recordkeeping requirements on our state’s 100 sheriffs; and not to interject the Attorney General into these judicial matters.”

Monday’s vigil in opposition to that bill — attended by dozens of advocates for North Carolina’s Latino and immigrant communities — stuck a different tone.

“We can see the different ways that the attacks and the racism and the anti-immigrant sentiment is going to be more out there,” said Pilar Rocha-Goldberg, CEO of El Centro Hispano.

Rocha-Goldberg said they’ll continue to organize despite the news out of Washington on Monday.

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“We saw it in the past. We saw it here, ice coming to take people from our community with really not the right way to do it. So, yeah, we are very concerned about that,” she said.

Copyright © 2024 WTVD-TV. All Rights Reserved.



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