North Carolina’s Department of Health and Human Services said in its denial letter that New Hanover failed to adequately make its case for adding new beds in the proposed location.
The medical center, which was recently acquired by Winston Salem, N.C.-based Novant Health, filed a certificate of need in 2020 to build the facility.
The proposal called for a facility with 66 acute care beds, eight operating rooms and six observation beds for short-term use.
The new facility, Scotts Hill Community Hospital, would have been located near the New Hanover County-Pender County line in North Carolina.
The medical center said it plans to appeal the certificate of need denial.
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