The North Carolina Department of Health and Human Services approved Altamonte Springs, Fla.-based AdventHealth’s certificate-of-need application to expand its new hospital in Weaverville, N.C., and rejected Novant’s application for a $249 million cancer hospital in Asheville.
The state department of health cited several factors in its decision to favor AdventHealth over Novant, including better projected access for Medicare patients, lower average operating costs per admission and lower net revenue per discharge, according to the report.
The outcome echoes a 2022 decision when state officials awarded AdventHealth approval for its original 67-bed hospital, rejecting proposals from Novant and Asheville, N.C.-based Mission Health, part of HCA Healthcare. The hospital is expected to open in 2025 and cost more than $250 million.
A spokesperson for Novant said the health system is disappointed that its CON application was denied but it will continue to explore opportunities to expand services in the area.
“We will continue to listen to and partner with local physicians to meet the needs of the community, and look forward to applying for the additional beds outlined by the state medical facilities plan in 2025,” Novant said in a statement shared with Becker’s.
Novant has been expanding beyond its core markets in Winston-Salem, Charlotte and Wilmington. The system has targeted western North Carolina and the competitive Triangle region, where it has applied to build a $287 million hospital.
It has also expanded significantly in South Carolina, acquiring three hospitals from Dallas-based Tenet Healthcare in February. The $2.4 billion deal saw Novant acquire East Cooper Medical Center in Mount Pleasant, S.C., Hilton Head Hospital and Coastal Carolina Hospital in Hardeeville.
