Novant Health and Community Health Systems have filed an opposition to the Federal Trade Commission’s (FTC) attempt to block a $320 million deal to purchase two North Carolina hospitals owned by CHS. The opposition was submitted in response to the FTC’s request for a preliminary injunction against the acquisition, which was filed in federal court in the Western District of North Carolina. Novant Health and CHS are seeking to deny the FTC’s request.
The hospitals in question are Mooresville’s Lake Norman Regional Medical Center and Statesville’s Davis Regional Medical Center, both owned by CHS. Novant Health stated that these hospitals were not significant competitors and that the acquisition would not have a negative impact on competition in the area. They believe that the FTC’s arguments are based on a narrow and distorted view of healthcare competition in the region.
Novant Health previously sued to buy the two hospitals, stating that it could potentially increase healthcare costs and reduce incentives to invest in quality care. The FTC argued that the deal could lead to higher prices and less innovation in patient care. Despite this, Novant Health and CHS are moving forward with their opposition to the FTC’s request for a preliminary injunction.
Atrium Health, the largest healthcare provider in the Charlotte area, has not been given a market share by the FTC in their assessment of competition in the region. The complaint filed by Novant and CHS challenges this assessment and argues that competition in the area is not as limited as the FTC claims. The outcome of this legal battle will have significant implications for
