Federal lawsuit is aimed at $320M Novant Health acquisition deal
The lawsuit alleges that Novant Health would corner the majority of the health care market in the area if the deal went through, which could lead to higher costs for people seeking services. DAVID FORD/WFDD
The Federal Trade Commission is suing to block Winston-Salem-based Novant Health from acquiring two regional hospitals — and $320 million is on the line.
The lawsuit is designed to prevent Novant from taking over Lake Norman Regional Medical Center and Davis Regional Medical Center from their parent company Community Health Systems, Inc. The complaint says that if the deal were to proceed, prices for medical services could rise, and the incentive to invest in patient-oriented care would be diminished.
The FTC calls Novant not only one of the largest hospital networks in the Southeast, but also one of the most expensive.
As part of the $320-million deal, in addition to the medical centers, a 24-person physicians group and a majority share of an endoscopy center would be absorbed.
The FTC alleges that the deal would set up Novant to control 65% of the health care market in an area that includes Iredell County and northern Mecklenburg County.
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