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Novant drops appeal over Kannapolis hospital
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Published: August 26, 2009
KANNAPOLIS — Novant Health has given up its efforts for now to build a 50-bed hospital in Kannapolis, ending a nearly two-year procedural battle with the state and its main competitor in the Charlotte region.
Novant appealed the state's decision to grant Carolinas HealthCare System a certificate of need to build a healthplex on Lane Street in Kannapolis and the state's denial of Novant's application to build Rowan Regional Medical Center-South nearly a year ago.
Since then, the case has been tied up in mediations and administrative hearings.
Novant did not give a specific reason for withdrawing its appeal, but said it would look at other options for providing health care in the southern Rowan area.
"Our decision to drop the appeal does not deter us in our efforts to provide the residents of southern Rowan County and northern Cabarrus County easier access to quality health care," said Rowan Regional president Jeff Lindsay, in a statement. "We remain committed to the belief that this hospital is necessary and we will continue to evaluate this option."
Novant is running its Community Care Cruiser in southern Rowan County, which offers pediatric services to communities through a mobile "doctor's office."
CHS spokesman Kevin McCarthy said Novant's decision doesn't directly affect CHS and the company did not have any comment.
Both health care companies announced hospital projects in October 2007. CMC-NorthEast announced its intention to build CMC-Kannapolis, a $17-million, 24,000 square-foot healthplex that would include a free-standing emergency department, among other services.
The proposed location was on Lane Street, off Exit 63 in Kannapolis. CMC-NorthEast approached Lane Street Church of God with an offer to purchase the church's property.
Novant and Rowan Regional Medical Center in Salisbury submitted an application jointly to the state for Rowan Regional South, a $90-million, 50-bed hospital located on Moose Road, less than a half-mile from CMC-Kannapolis. The hospital would offer acute care beds, surgical, imaging and maternity services about five miles from CMC-NorthEast in Concord.
Novant and CHS, through its constituent hospitals Rowan Regional and CMC-NorthEast, fought a public relations battle in the final months of 2007, each vying for public support behind their respective facilities.
CHS claimed that Rowan Regional South would take away services, physicians and patients from CMC-NorthEast. Novant argued that residents in Kannapolis and southern Rowan County deserved a hospital closer to home and a choice in health care providers. Rowan residents said they wanted a community hospital, but said Novant should consider another site closer to Landis and China Grove.
The state granted CMC-NorthEast the go-ahead in February 2008 and denied Rowan Regional's application in March 2008. Rowan Regional appealed the decision.
Both sides went into mediation, but those talks broke down in October 2008. The case was slated to go before an administrative judge.
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