Dive Brief:
- Community Health Systems will sell 123-bed Lake Norman Regional Medical Center to Duke University Health System for $280 million as it continues to shrink its acute hospital portfolio.
- The proposed deal marks the second time CHS has sought to sell Lake Norman Regional in Mooresville, North Carolina. The Franklin, Tennessee-based operator’s proposed sale to Novant Health fell apart earlier this year amid regulatory scrutiny.
- Should the new deal close as expected in the first quarter of 2025, it will be a “significant expansion” for Duke Health, according to a press release. The academic health system currently operates three hospitals in the Raleigh-Durham region of North Carolina.
Dive Insight:
Duke Health welcomed the chance to expand outside the Triangle, North Carolina region in a press release about the proposed deal.
“We recognize the health care landscape is changing,” Craig Albanese, chief executive officer of Duke University Health System said. “While we continue to expand access to care within the communities we serve, it’s also time to do more and deliver care to more people – in more communities.”
Meanwhile, CHS, which operates 69 hospitals across 15 states, has been trimming its hospital portfolio for several years in an effort to generate liquidity and focus on core markets.
This year, the operator is targeting over $1 billion in proceeds from hospital sales in markets including Florida, Mississippi and Tennessee.
However, not all of CHS’ proposed deals have been completed. Last month, a proposed sale of three hospitals in Pennsylvania fell through after a buyer failed to secure funding.
And in North Carolina, CHS’ original deal to sell Lake Norman Regional Medical Center and Davis Regional Medical Center to major regional provider Novant Health fell apart after the Federal Trade Commission sued to block the transaction, saying the sale would be a threat to competition in the region.
By selling hospitals individually and to smaller buyers, CHS’ divestitures have had better luck clearing regulatory review.
In October, CHS sold Davis and Davis Regional Psychiatric Hospital to Iredell Health System. Iredell operates just one hospital and a network of care clinics.
