FTC wins as Novant Health cancels North Carolina hospital merger

Two weeks ago, Novant Health was close to finalizing a deal to acquire two hospitals north of Charlotte. However, concerns were raised by federal antitrust regulators, North Carolina officials, and economists about the potential near-monopoly power Novant would have in the region as a result of the acquisition.

Despite having $8 billion in revenue and being a nonprofit hospital system, Novant decided to cancel the deal shortly after a federal court of appeals issued a temporary order halting the acquisition until the Federal Trade Commission could file an appeal. In a statement, Novant expressed disappointment at the opposition they faced from the FTC and their inability to move forward with the transaction.

Novant had hoped to restore lost services in the area and provide high-quality care to patients through the acquisition. However, they felt that the ongoing roadblocks from the FTC made it impossible to complete the deal. The company expressed their belief that the facilities and their patients would have greatly benefited from joining Novant Health.

To access the full story and daily market-moving biopharma analysis from STAT+, readers can subscribe to STAT+ to unlock exclusive articles and content. Subscribers can enjoy unlimited access to award-winning journalism and participate in exclusive events offered by the platform. Individual and group subscription plans are available for those interested in accessing this content.