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Novant offers $5B+ bid for North Carolina hospital

Novant Health committed to investing more than $5 billion in its bid to partner with, manage or own Wilmington, N.C.-based New Hanover Regional Medical Center, according to The Winston-Salem Journal

The commitment would include $2 billion in upfront cash to the county, $2.5 billion for strategic master plan and a $600 million capital commitment, according to the report. 

Novant said the financial commitment to the New Hanover hospital will ensure support for "information technology and quality initiatives, improvements to existing facilities, new construction and other strategic capital."

Novant said in its proposal that it is willing to pursue an affiliation, joint venture or acquisition. 

Novant said the New Hanover hospital would have a representative on its board if a joint venture is formed, or two members if Novant becomes its parent company.

In addition to the financial commitment, Winston-Salem, N.C.-based Novant said it will partner with Chapel Hill, N.C.-based UNC Health and its medical school "in the event the New Hanover County Board of Commissioners ultimately chooses to affiliate or form a joint venture with, or sell to Novant Health."

"Maintaining and expanding medical education at [New Hanover Regional] will allow Novant Health to best serve the Wilmington community, while continuing to build the pipeline of physician talent for North Carolina," said Carl Armato, Novant CEO and president. 

The New Hanover County Board of Commissioners voted last year to explore a sale or partnership for New Hanover Regional. The county received proposals from six organizations: Atrium Health (Charlotte, N.C.), Bon Secours Mercy Health (Cincinnati), Duke Health (Durham, N.C.), HCA Healthcare (Nashville, Tenn.), Novant Health and UNC Health.

The board appointed an advisory group to vet proposals, and the group voted in early May to select three finalists: Novant, Duke Health and Atrium Health. 

More article on healthcare industry transactions: 
Baptist Health speeds up $361M deal for 9th hospital
St. Joseph Hospital sells California facility to private equity firm
Hudson Regional-CarePoint deal throws wrench in other New Jersey hospital talks

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