Novant faces Wilmington market hospital challenge from UNC Health

Novant Health Inc.'s dominance of the Wilmington and New Hanover County healthcare marketplace is being challenged by UNC Health's plans to open a community hospital.

UNC Health said Monday it will file a certificate-of-need application to establish a 62-acre campus at the southeast corner of South 17th Street and Shipyard Boulevard.

The proposed site is within an easy walk of Novant's 783-bed New Hanover Regional Medical Center at 2131 S 17th St.

In February 2021, Novant completed its $5.3 billion acquisition of the Wilmington hospital in planting a third major operational hub in North Carolina. Novant was chosen over Atrium Health and Duke Health.

The 2026 State Medical Facilities Plan lists a need for 225 beds in the county.

UNC Health has not disclosed how many beds it plans to pursue or a capital investment projection. It has until mid-June to apply.

It did say if its CON application is approved by state health regulators, it plans to open the hospital in 2030.

"This proposed hospital will strengthen UNC Health's statewide reach - connecting North Carolina communities from the mountains to the coast," the system said in its news release.

Dr. Cristy Page, chief executive of UNC Health and a Wilmington native, said "this is what 'care closer to home' looks like: a community hospital, backed by a statewide, state-owned academic health system, designed to bring the additional services this growing community has asked for."

According to Laurie Whalin, Novant's president of the New Hanover hospital and acute care operations for the system's Coastal region, "based on the size of the bed count, we fully expected this to be a competitive process."

"It's no secret southeastern North Carolina has become a destination, and the region continues to see population growth and new businesses, which has prompted the state to allow 225 new hospital beds in New Hanover County."

The pending UNC Health CON application is intriguing in that the systems have been collaborating for several years in the Wilmington market.

When Novant announced its plans to purchase the New Hanover hospital in May 2020, part of its offer to the Wilmington market was agreeing to form its first-ever medical education partnership with UNC Health and its medical school.

"Maintaining and expanding medical education at (the hospital) will allow Novant Health to best serve the Wilmington community, while continuing to build the pipeline of physician talent for North Carolina," Carl Armato, Novant's chief executive and president, said in a May 2020 statement.

UNC Health said its current partnership with Novant "includes important work on clinical education and research and various pediatric specialties. That relationship has improved care, access and medical education in the Wilmington region, and we expect that will continue."

Whalin did not mention Novant's collaborations with UNC Health.

According to several media sources in the Wilmington area, Novant's appeal has waned in part from residents expressing concerns or frustrations with healthcare services or the system's overall community involvement.

"As I've listened to my own neighbors and community members across the region, I've heard a clear message: Wilmington is ready for more choice in healthcare - and UNC Health is ready to deliver it," said Ernie Bovio, UNC Health's regional president for its Southeast Coastal market.

Bovio stepped down earlier this year as president of the New Hanover hospital to take the UNC Health post.

Whalin said Novant "has an unparalleled commitment to this community. We have and continue to grow alongside it. Our strong community partnerships and our Vision 2030 plans to improve access to high-quality care are years in the making."

Whalin cited Novant's commitment to spend an additional $2 billion to expand the healthcare infrastructure in the Wilmington area, including the projected June opening of its $294.8-million, 66-bed Scotts Hill Medical Center.

There are plans to file for a certificate-of-need for an expanded heart and vascular center in a new patient tower at its Wilmington hospital, along with a new medical office building in midtown Wilmington.

Novant recently received state health regulatory approval for a 20-bed community hospital in southeastern North Carolina in the Leland community.

"As always, we will continue to invest in our people and our patients to support the wellbeing of the entire region," Whalin said.

Meanwhile, Wilmington Health - the largest independent, physician-owned practice in Southeastern North Carolina - supports the UNC Health hospital application. Its providers are expected to participate on the medical staff of the proposed hospital.

"Wilmington Health has served this community for more than 50 years, and we know firsthand that our patients are interested in choice," said Jeff James, chief executive of Wilmington Health.

"We strongly support UNC Health's plan to bring a new community hospital to our region."

UNC Health is in talks with UNC Wilmington about expanding their partnership into a medical school.

"UNC Health has a long history of partnering with North Carolina's educational institutions," the system said. "We share the same goal: a healthier North Carolina with more physicians serving more communities.

"We look forward to understanding more about UNCW's vision and exploring where alignment could benefit Wilmington."

Bovio came to Novant in January 2024 as president of the New Hanover hospital after stepping down as president of UNC Health's Rex Hospital in Raleigh.

Bovio also previously served as leader of UNC Health's Triangle East Region, including UNC Health Rex in Raleigh and Holly Springs, and UNC Health Johnston in Smithfield and Clayton.

Bovio also served as president of High Point Medical Center from 2014 to 2018 when it was a UNC Health affiliate before being sold in September 2018 to Wake Forest Baptist Medical Center.

Jeff Lindsay, UNC Health's president and chief operating officer, is another part of the Novant-UNC Health pipeline, having joined UNC Health in December 2023 after being a Novant executive since 1996 and as chief operating officer for nine years at the time of his departure.

He had served as Forsyth's Medical Center's president from May 2010 to May 2014.

Chad Setliff, former president of Forsyth Medical Center for more than six years and Novant's greater Winston-Salem market, took a job in October 2024 with UNC Health. Setliff had been head of Forsyth for just more than six years.

In June 2025, Jon Mercer took over as president and chief operating officer of Clemmons Medical Center. He previously was chief operating officer for UNC Health's Blue Ridge operations in Morganton.

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This story was originally published May 13, 2026 at 1:07 PM.