Novant Health and Duke Health join forces in a strategic move that could reshape health care access in one of the Triad's fastest-growing cities. But another major health system is also eyeing the growing area.
Mebane has become the newest battleground for large Triad health systems.
Novant Health of Winston-Salem and Duke Health of Durham are eyeing another big step in advancing both their partnership and their individual efforts to expand outside their regions. Their newest target is Mebane, where they will compete with Cone Health of Greensboro for the rights to build a new hospital in the Triad's fastest-growing city.
Duke Health and Novant Health have filed an application with the N.C. Department of Health and Human Services to build a $225 million, 46-bed hospital on land Duke owns along Gregory Poole Lane on the Alamance County side of Mebane next to a mixed-use development coming from Koury Corp. and off the same interstate exit as the Bucee's coming to Mebane.
Triad Business Journal reported earlier this week that Cone Health has applied for a $275 million, 46-bed hospital in Mebane.
In the certificate-of-need proposal put forth by Novant and Duke, they would evenly split the proposed capital expenditure for the project, paying $112.5 million each, according to the project application. The health systems filed the application alongside Alamance Health Company LLC, a newly formed entity through which Duke and Novant are equal members.
This the first major move to come from a recent partnership the two health systems unveiled in March. At the time, the health systems said they would work together to jointly develop new offices and facilities to "expand access to affordable, high-quality care."
The organizations say the proposed Mebane hospital would enhance competition and improve access in a fast-growing area. "Duke Novant Mebane Hospital is not only responsive to current need, it is a forward-looking investment in the health and well-being of this rapidly evolving community," the application says.
In addition to 46 acute care beds, the hospital would have 10 emergency department exam rooms, eight observation beds, one dedicated C-section operating room, two procedure rooms and other imaging and ancillary services.
The Alamance Health Company would own and operate the hospital, if the North Carolina Department of Health and Human Services approves the application. The proposal is in response to the 2025 State Medical Facilities Plan, which identified a need for 46 acute care beds in Alamance County.
This is the latest effort by Novant Health to build its presence in North Carolina and reach its goal of being the largest health system in the Carolinas. Novant has a major presence in Charlotte, Winston-Salem and Greenville and has also expanded into South Carolina, but its recents efforts to expand in both the Triangle and Asheville markets have been denied by NCDHHS.
Duke Health is also looking to epxand outside the Triangle. This is the second application Duke has filed this year to expand its reach in Mebane, where it already operates a primary care clinic. The health system in February filed an application to acquire a fixed MRI scanner in a project expected to cost about $7.39 million.
Duke also recently closed a $284 million deal to acquire Lake Norman Regional Medical Center — now named Duke Health Lake Norman Hospital — in Mooresville from a subsidiary of Community Health Systems (NYSE: CYH). Novant Health had previously attempted to acquire the Lake Norman hospital but gave up on the effort after running into objections from the FTC.
The hospital would be adjacent to the $255 million mixed-use project that Greensboro-based Koury is developing on about 80 acres along Trollingwood-Hawfields Road. Koury's plans call for 645 apartment units and 38 townhomes, and Target Corp. told Triad Business Journal that it plans a store of approximately 128,000 square feet to anchor the retail side of the development.
Novant and Duke are facing competition from Cone Health. In addition to the 46 beds, the Cone hospital would include 15 emergency department bays, three general operating rooms and two procedure rooms, among other services. Cone Health Mebane Hospital would sit at 103 Medical Park Drive, adjacent to Cone Health MedCenter Mebane.