Novant goes west: Healthcare system gains NC regulatory approval for Asheville community hospital
Novant Health Inc.'s third application to open a community hospital in western North Carolina has proven to be the charm.
Novant said Friday the N.C. Division of Health Service Regulation has issued a conditional certificate-of-need approval for a 34-bed Asheville Medical Center.
Although the division has not posted its CON application determinations as of Friday, it's typical of healthcare systems to issue a news release of an approved hospital beforehand.
To be located at 433 Long Shoals Road, on a 24-acre site near the Biltmore Park Town Square shopping mall off Interstate 26, the $322.7 million hospital is slated to open in 2030.
"These milestones represent the beginning of a new chapter for Novant Health in Buncombe County - one that expands choice and improves access to care," Novant president and chief executive Carl Armato said in a news release.
Novant, with major facilities in the Triad, Charlotte and Wilmington, has cleared a key regulatory hurdle to establish a foothold in a fourth urban North Carolina region.
However, it's typical for healthcare systems whose CON applications were denied by regulators to pursue an appeal of the decisions.
Regulators have listed in previous CON decisions concerns about Mission already having a near-monopoly on hospital beds in the four-county region.
Yet, regulators denied in December Novant's bed to open a 26-bed, $249.7-million community hospital in the Asheville area, instead opting to allow AdventHealth to expand a planned hospital campus in Buncombe County.
Regulators also rejected in December 2022 Novant's bid to open a 67-bed community hospital in Asheville in favor of AdventHealth entering the Asheville market with a planned 67-bed hospital in Weaverville.
Novant recently debuted the first phase of its South Asheville Medical Park, which provides patients with access to specialty clinics and procedural space.
The 38,000-square-foot specialty facility opened at the site of a former Gold's Gym at 1815 Hendersonville Road. The first phase features a Plastic & Reconstructive Surgery and a Women's Specialty Care clinic.
"We've been steadfast in our commitment to bring that same model to western North Carolina," Armato said. "We're proud to bring that vision to life through Novant Health Asheville Medical Center and our growing specialty care network."
The 2025 State Medical Facilities Plan listed a need for an additional 129 acute-care beds in the Asheville area. The plan is an annual document that contains policies and methodologies used in determining need for new health care facilities and services.
The need for up to 129 hospital beds in the Asheville area prompted for-profit Mission Health, the dominant system in the market, as well as AdventHealth to submit applications to meet the need.
AdventHealth's bid for a $253.7 million addition to its planned hospital would give it 222 beds altogether in the market. Mission estimates the cost of expanding by 129 beds at $198.5 million.
There is a surprising fourth bidder for the 129 beds in UNC Health, which wants permission to build a $711 million hospital.
It is unclear how state health regulators divvied up the remaining 95 beds in the market.
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