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Dive Temporary:
Group Well being Techniques will promote 123-bed Lake Norman Regional Medical Heart to Duke College Well being System for $280 million because it continues to shrink its acute hospital portfolio.
The proposed deal marks the second time CHS has sought to promote Lake Norman Regional in Mooresville, North Carolina. The Franklin, Tennessee-based operator’s proposed sale to Novant Well being fell aside earlier this 12 months amid regulatory scrutiny.
Ought to the brand new deal shut as anticipated within the first quarter of 2025, will probably be a “important enlargement” for Duke Well being, in keeping with a press launch. The educational well being system at the moment operates three hospitals within the Raleigh-Durham area of North Carolina.
Dive Perception:
Duke Well being welcomed the prospect to increase outdoors the Triangle, North Carolina area in a press launch in regards to the proposed deal.
“We acknowledge the well being care panorama is altering,” Craig Albanese, chief government officer of Duke College Well being System stated. “Whereas we proceed to increase entry to care inside the communities we serve, it’s additionally time to do extra and ship care to extra folks – in additional communities.”
In the meantime, CHS, which operates 69 hospitals throughout 15 states, has been trimming its hospital portfolio for a number of years in an effort to generate liquidity and concentrate on core markets.
This 12 months, the operator is focusing on over $1 billion in proceeds from hospital gross sales in markets together with Florida, Mississippi and Tennessee.
Nevertheless, not all of CHS’ proposed offers have been accomplished. Final month, a proposed sale of three hospitals in Pennsylvania fell via after a purchaser didn’t safe funding.
And in North Carolina, CHS’ unique deal to promote Lake Norman Regional Medical Heart and Davis Regional Medical Heart to main regional supplier Novant Well being fell aside after the Federal Commerce Fee sued to dam the transaction, saying the sale can be a menace to competitors within the area.
By promoting hospitals individually and to smaller patrons, CHS’ divestitures have had higher luck clearing regulatory assessment.
In October, CHS bought Davis and Davis Regional Psychiatric Hospital to Iredell Well being System. Iredell operates only one hospital and a community of care clinics.
