Novant Health and Duke University Health System Partner to Expand Care Access in North Carolina

In a significant move to enhance healthcare delivery in North Carolina, Novant Health and Duke University Health System have announced a collaborative effort to establish new medical campuses across the state. This partnership, revealed on Monday, aims to address growing healthcare needs by improving access to both primary care and specialized treatment services.

Strategic Expansion to Reduce Wait Times and Increase Innovation

The joint initiative between Winston-Salem-based Novant Health and Durham-based Duke University Health System will focus on constructing an undisclosed number of new healthcare facilities. Construction of the initial sites is slated to begin this summer, with the first facilities expected to open approximately 18 months later.

Carl Armato, President and CEO of Novant Health, emphasized the shared vision driving this collaboration: "We have a shared vision for what healthcare can look like, and our collaboration means the communities we serve together will benefit from our combined focus on quality, innovation, and excellence in patient care and experience."

This partnership aligns with industry predictions that health systems would increasingly collaborate to expand their reach and share overhead costs. By joining forces, Novant and Duke aim to accelerate innovation and invest in care quality, potentially setting a new standard for healthcare delivery in the region.

Financial Stability Underpins Expansion Plans

Unlike some recent provider partnerships driven by financial distress, both Novant and Duke Health enter this collaboration from positions of financial strength. Novant Health, which operates 19 hospitals, reported $919.8 million in excess revenue over expenses for the year ended December 31, a significant increase from $460.8 million in 2023. Similarly, Duke Health, with its three hospitals, reported $175.7 million in excess revenue over expenses for the six-month period ending December 31, only slightly lower than the previous year.

Challenges and Future Growth Strategies

Despite its strong financial position, Novant Health has faced challenges in its recent expansion efforts. The system's applications for Certificates of Need to build hospitals in Asheville and the Triangle region of North Carolina have been denied twice by state regulators. However, John Gizdic, Novant's COO, remains optimistic about the "tremendous need" for services in these areas and plans to reapply for both projects.

Gizdic also emphasized Novant's selective approach to growth: "We're not growing to grow. We really want to make sure that we are bringing more convenient, more accessible, more affordable care to communities. As we grow, we want to stay true to our commitments around those areas of safety and quality and the remarkable patient experience."

This partnership between Novant Health and Duke University Health System represents a significant development in North Carolina's healthcare landscape, promising to enhance care accessibility and quality for residents across the state. As construction begins this summer, the healthcare community will be watching closely to see how this collaboration reshapes the delivery of medical services in the region.