Duke Health to Acquire Mooresville Hospital for $280 Mn After Novant Deal Falls Through

The hospital, a 123-bed acute-care facility, is currently owned by subsidiaries of Community Health Systems Inc.

Duke Health has signed an agreement to acquire Lake Norman Regional Medical Center (LNRMC) in Mooresville, North Carolina, for $280 million.

The transaction is expected to close in early 2025. The hospital, a 123-bed acute-care facility, is currently owned by subsidiaries of Community Health Systems Inc.

The acquisition comes after Novant Health's attempt to acquire LNRMC was blocked by federal regulators earlier this year due to concerns over potential monopolistic practices.

The Federal Trade Commission (FTC) filed to prevent the $320 million deal, fearing it would lead to higher healthcare costs and reduced quality of care. Novant Health withdrew from the pursuit in June 2024.

Duke Health's move to acquire the hospital marks a significant expansion of its clinical services beyond the Triangle area, with the closest Duke clinic to Charlotte located in Mebane, North Carolina.

The acquisition will bring Duke Health’s expertise and resources to the Lake Norman community, with services including emergency care, cardiology, surgery, orthopedic care, and outpatient imaging.

Craig Albanese, CEO of Duke University Health System (DUHS), emphasized the importance of expanding access to healthcare services. “We recognize the health care landscape is changing,” Albanese 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. We want to bring access to all that Duke Health has to offer to the Lake Norman community.”

LNRMC provides 24-hour emergency services, labor and delivery care, and a range of specialty services. Albanese noted that the hospital's employees and community physicians would continue to play a vital role in the new organization.

“Our primary focus is on the well-being of our patients and the community. LNRMC has a long history as a highly successful medical center, which we look forward to learning from as we develop relationships with team members, providers and the community and work together to serve Iredell County., Albanese stated.

Regulatory Approval Pending

The acquisition is subject to regulatory approvals and other customary closing conditions. Kaufman Hall, a consulting firm, acted as the exclusive financial advisor to Duke Health in the transaction.

Following the acquisition, Davis Regional Medical Center, another facility that was part of Novant Health's original bid, will now serve as a behavioral health facility under Iredell Health System.

The purchase of LNRMC by Duke Health is expected to strengthen healthcare services in the region, expanding the system’s reach and offering greater access to medical care in the Lake Norman area.

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