Community Health Sale of Two North Carolina Hospitals Falls Through

By Colin Kellaher

Community Health Systems' plans to sell a pair of North Carolina hospitals for $320 million have unraveled amid regulatory pushback on the deal.

Community Health late Wednesday said Novant Health, which last year agreed to buy Lake Norman Regional Medical Center and Davis Regional Medical Center, won't move forward with the acquisition, which has drawn opposition from the Federal Trade Commission.

The FTC in January moved to block the deal, saying the transaction would allow Novant to control nearly 65% of the market for inpatient general acute care services in the eastern Lake Norman area.

A U.S. appeals court earlier this week issued a temporary injunction blocking the sale pending final resolution of an appeal by the FTC of a district court decision that allowed the sale to proceed.

Community Health said it is evaluating the current operations at the hospitals in light of the sale termination, adding that it foresees no disruption to patient care or any other immediate changes.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 20, 2024 10:57 ET (14:57 GMT)

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