Novant Health lost its bid to grow its North Carolina acute care network as state regulators approved an Atrium Health hospital expansion.
Novant and Atrium, Advocate Health’s North Carolina division, are competing for 89 beds that state regulators say Mecklenburg County will need by 2027. The health systems applied for those beds via the certificate of need process, which caps healthcare service expansions and requires the state to sign off on new healthcare projects.
Related: Hospital competition heats up as capacity wanes
The North Carolina Division of Public Health last week denied Novant’s application to add up to 80 beds at Presbyterian Medical Center in Charlotte. Instead, regulators conditionally approved Atrium’s application to add up to 89 additional beds at Carolinas Medical Center, also in Charlotte. Novant appealed the decision.
State overseers chose Atrium over Novant because Carolinas Medical Center operates at a higher capacity than Presbyterian and offers more services, such as a Level I trauma center and quaternary care, according to Division of Public Health filings. The conditions of approval include energy efficiency and sustainability plans and submitting progress reports to the state.
A Novant spokesperson said the organization is disappointed its application was not approved, but the health system's plans for expanding Presbyterian are not limited to that project.
“Our work to create a healthier future includes a commitment to grow alongside our communities in order to meet their care needs,” the spokesperson said in a statement.
An Atrium spokesperson said the state’s approval is a reflection of the increased demand for care and the community's trust in Atrium.
“With an estimated 117 new people moving to the Charlotte region every day, our hospitals in this area frequently operate at or near full capacity,” the spokesperson said in a statement.
The nonprofit health systems are also competing in Cabarrus County for up to 126 inpatient beds. Regulators are still reviewing those applications.
