Novant, a non-profit hospital chain based in North Carolina, struck a deal with the troubled for-profit Health Management Associates in March 2008 where Novant took a sizeable ownership stake in seven HMA hospitals.
Today HMA filed papers with the Securities and Exchange Commission to restructure the deal.
Novant is dropping its interest in most of the hospitals, but it’s taking over complete control of Franklin Regional Medical Center, north of Raleigh, and Upstate Carolina Medical Center in Gaffney, South Carolina.
Novant will retain a 30 percent stake in Lake Norman Regional Medical Center in Mooresville, North Carolina.
The non-profit chain will have its hands full with Franklin Regional Medical Center, which has been threatened more than once over the past several years by the Centers for Medicare and Medicaid Services.
But Novant has been drooling over the Triangle market for years and recently failed to win permission to build a hospital in Holly Springs. This could be the opening the company has wanted — I’m sure we’ll hear much more from Novant in the Raleigh-Durham area. Overall I think this is good news — Novant is known for its quality, and it’s certainly an improvement over the bumbling HMA.