Surry County approves Novant Health purchase of Northern Regional Hospital

The Surry County Board of Commissioners voted June 15 to approve a resolution authorizing an asset purchase agreement (APA) under which Novant Health will acquire Northern Regional Hospital and related assets, and to authorize related bond‑defeasance arrangements to address outstanding hospital‑district debt.

County attorney Dan Barrett told the board the resolution would formalize a long‑standing partnership between Northern Regional Hospital and Novant Health and that the transaction was conducted in compliance with North Carolina General Statute 131E‑13D. Barrett said the agreement is intended to secure the hospital’s future and preserve core services including OB‑GYN, primary care, pediatrics, orthopedics and skilled nursing, and to protect the jobs of more than 1,000 hospital employees.

Robin Hodge, interim president and CEO of Northern Regional Hospital, thanked the board and trustees and said the APA “preserves the services that our community depends on and equally important protects the job security of more than a thousand employees who are the heart of Northern Regional Hospital.” Alicia Hutchkins, senior vice president for Novant Health Triad Region Operations, described Novant as “a neighbor” and said the system is committed to expanding access to primary, specialty and hospital‑based services in Surry County and surrounding areas.

Transactional counsel Jim Wall outlined key financial elements discussed at the meeting: he described an initial $130 million tranche earmarked for routine capital improvements (including $40 million expected in the first five years), additional funds for strategic growth, roughly $12.5 million to retire outstanding bond debt, a $30 million commitment to a community foundation, and further workforce investments. Wall said those commitments, together with other obligations discussed, amount to total investments that exceed $200 million over time and that the parties anticipate regulatory approvals and a closing roughly 90 days from the board’s action, pending required state and federal reviews.

County counsel explained that because a portion of the hospital district’s Series 2017 revenue bonds are not callable until Oct. 1, 2027, Novant will provide up to $12.5 million into an escrow fund to defease the bonds; an escrow agent would hold those funds until the bonds become redeemable. The board considered and approved a separate resolution authorizing the defeasance and related escrow arrangements; the transcript records a voice vote in favor, but does not provide an individual roll‑call tally.

Commissioner Tucker moved to approve the APA resolution; a commissioner seconded the motion (the transcript does not clearly identify the second speaker by name), and the chair called for a voice vote. After the vote the board signed the resolution and the asset purchase agreement in open session and invited Northern and Novant representatives to take a group photograph.

What happens next: attorneys and presenters said the transaction remains subject to customary regulatory approvals; counsel estimated a closing in roughly 90 days if approvals proceed as expected. The defeasance mechanics will place funds in escrow to be redeemed when the bonds become callable on Oct. 1, 2027.

Authorities cited during the meeting included North Carolina General Statute 131E‑13D (statutory process for health‑care transactions) and the board’s hospital‑district bond documents related to the Series 2017 bonds.