Novant seeks final Surry County approval for Northern Regional acquisition
Novant Health's offer to purchase Northern Hospital of Surry County has advanced to a vote before the county commissioners.
The commissioners serve as the hospital's governing body.
The board issued a public notice on Tuesday that it will address Novant's offer at a meeting at 6 p.m. on Monday at 114 W. Atkins St. in Dobson.
According to the notice, Novant would operate it under the name Novant Health Northern Regional Medical Center LLC.
"We're pleased to share another step forward in our work with Surry County to bring Northern Regional Hospital, its patients and dedicated team members into the Novant Health network", Novant said in a statement.
"After the Surry County Board of Commissioners unanimously selected Novant Health last October as the preferred healthcare partner to acquire Northern Regional Hospital, we completed the customary due diligence process."
"We now look forward to the commissioners meeting, where commissioners plan to finalize the agreement for Novant to purchase the hospital and its related healthcare facilities in Mount Airy."
Northern, based in Mount Airy, is one of the two remaining independently operated hospitals in the Triad and northwest North Carolina, along with Randolph Hospital in Asheboro.
The region's other 16 not-for-profit hospitals are either owned and operated by or affiliated with Atrium Health Wake Forest Baptist, Cone Health, Novant and UNC Health.
Northern is licensed for 133 beds. It currently utilizes a national healthcare consulting company to assist with management and supplies.
Novant submitted its acquisition proposal to the commissioners in 2025.
"Northern Regional Hospital and Novant Health share a future vision for healthcare in North Carolina's greater Triad region in which the parties will advance a long-term partnership with the local community in Mount Airy while elevating access to high-quality, value-based healthcare close to home," according to the proposal.
A Novant acquisition of Northern requires the approval of N.C. Attorney General Jeff Jackson.
Surry County Commissioner Bill Goins and County Manager Chris Knopf could not be immediately reached for comment on the potential transaction.
As is typical in transactions involving not-for-profit hospitals, Novant has not provided a purchase offer for Northern. Rather, Novant has pledged to provide $135 million in capital and operating expenses over 10 years.
About $12.5 million of the pledge would go toward a defeasance of all outstanding Northern Hospital District of Surry County Health Care Facilities Revenue Refunding Bonds, Series 2017. Defeasance is a financial and legal strategy in which a borrower nullifies an existing debt by replacing the original collateral - such as real estate property - with a portfolio of secure, income-generating assets.
However, Northern's 50% ownership stake in Mountain Valley Hospice would not be included in the deal. Hugh Chatham Hospital, which Baptist owns, controls the other 50% stake in Mountain Valley Hospice.
Novant said in its proposal that it "is committed to moving quickly."
"Novant Health has robust transaction and integration experience, including the team members, capabilities and experience to execute a successful Transaction and subsequent integration. The biggest priority throughout the transaction process will be avoiding disruption to co-workers, providers and patient care."
Novant operates six physician clinics and outpatient centers in Surry, five of which are in Mount Airy. Overall, Novant said it has nearly 1,000 Surry residents as employees.
Novant said it would maintain Northern's current services and partner with the community to offer new services where needed.
Novant said it would provide $35 million in funding to the hospital's community foundation.
The potential approval of Novant's acquisition of Northern comes as the system officially took over the operating lease for Community Hospital of Stokes in Danbury earlier this month.
Novant signed a 30-year lease with the Stokes County Board of Commissioners, with an option to extend for an additional 15 years. About 200 hospital employees officially joined Novant.
Stokes commissioners chose Novant in May 2024 to acquire the rights to operate the 53-bed hospital in Danbury from for-profit LifeBrite of Lilburn, Georgia. The initial goal was to have Novant buy or lease the hospital by Aug. 1, 2024. However, negotiations bogged down between Novant and LifeBrite until an agreement was reached in March. Novant agreed to pay LifeBrite $5 million for the lease rights to the Stokes facilities.
A key part of the county's selection of Novant was a $55 million capital investment pledge in Stokes healthcare facilities over five years.
Novant's other hospitals in the region are Clemmons, Kernersville and Thomasville medical centers and Medical Park Hospital.
Hugh Chatham, based in Elkin, was acquired by Baptist in July 2025 after 95 years of operating independently.
Baptist took over an 81-bed acute care hospital, a medical group with more than 70 providers across 25 locations and additional revenue to bolster its financial bottom line.
Officials from both systems said it may take up to 2 years to complete the integration.
Hugh Chatham joined Alleghany, Davie, High Point, Lexington and Wilkes medical centers under the Baptist umbrella.
"North Carolina is hardly unique with respect to hospital consolidation trends,"according to an April 2023 analysis by the Nelson Mullins law firm that focuses on healthcare law.
"As is true nationwide, North Carolina has few remaining hospitals that are truly independent, i.e., not affiliated with larger hospital systems.
The reasons for consolidation are multi-faceted, but shrinking margins, high fixed costs and access to capital are often cited as reasons driving the consolidation trend."
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This story was originally published June 9, 2026 at 8:53 PM.