Novant Health and Community Health Systems Fight Against FTC’s Attempt to Block Hospital Acquisition
Novant Health and Community Health Systems are pushing back against the Federal Trade Commission’s efforts to block a $320 million deal to purchase two North Carolina hospitals owned by CHS. In a complaint filed in federal court, Novant Health and CHS are urging the court to deny the FTC’s request for a preliminary injunction against the acquisition.
The FTC had filed a request for a preliminary injunction in March to halt the sale of CHS-owned Mooresville’s Lake Norman Regional Medical Center and Statesville’s Davis Regional Medical Center. Novant Health defended its proposal to acquire the struggling hospitals, arguing that they were not significant competitors in the market.
“The FTC’s arguments are premised on a distorted and artificially narrow view of healthcare competition in the Charlotte area,” Novant and CHS stated in the complaint. The FTC’s stance on competition in the Charlotte area, particularly with Atrium Health, has been a point of contention in the case.
In January, the FTC had sued to block Novant Health’s acquisition, citing concerns that the deal could lead to increased healthcare costs and hinder investments in quality care. The FTC highlighted Novant Health as one of the largest and most expensive hospital systems in North Carolina.
The battle between Novant Health, CHS, and the FTC underscores the complexities of healthcare mergers and acquisitions, as regulatory bodies seek to balance competition and patient care in the industry.