Novant Health and Community Health Systems hit back at the Federal Trade Commission's allegations that Novant's $320 million proposed acquisition of two CHS North Carolina hospitals would stifle competition.
The health systems allege in an April 15 filing the FTC's definition of the "Eastern Lake Norman Area" in the Charlotte region is a "distorted and artificially narrow view" of the market and allegedly incorrectly portrays the two hospitals — Lake Norman Regional Medical Center in Mooresville and Davis Regional Medical Center in Statesville — as viable competition to Novant's nearby facilities.
Related: FTC sues to block proposed CHS-Novant hospital sale
"Lake Norman Regional has a low and declining occupancy rate. ... It faces severe challenges with staffing key service lines and scores poorly on quality metrics," the U.S. District Court for the Western District of North Carolina filing said. "At Davis, CHS terminated all hospital services, except behavioral health, in 2022, but it continues to lose money."
Novant and Franklin, Tennessee-based CHS also argue the FTC's East Lake Norman Area market definition does not adequately factor in one of Novant's biggest competitors in metro Charlotte, Atrium Health. Atrium, now part of Advocate Health, plans to open a hospital nearby in Cornelius in 2025.
The FTC declined to comment. Atrium did not respond to requests for comment.
Winston-Salem, North Carolina-based Novant has said acquiring the hospitals would allow it to revitalize lost services and provide new technology.
The FTC sued Novant in January to block its acquisition of the two hospitals, alleging the deal would be anticompetitive and irreversibly consolidate the market. Last month, the FTC filed to seek a preliminary injunction to block the acquisition.
Also this week, North Carolina State Treasurer Dale Folwell (R) filed an amicus brief alleging the deal would raise healthcare costs and hurt taxpayers.