UNC Health Pursues Certificate of Need Approval for New Hospitals in Asheville and Wilmington
Key Insights
UNC Health (search) has submitted a Certificate of Need application to North Carolina DHHS for a 92-bed hospital near downtown Asheville, with a hearing scheduled for August and a final decision expected in December.
The proposed Asheville facility would offer emergency care, intensive care, neonatology, cardiology, gastroenterology, radiology, psychiatry, and other specialty services on a 21.5-acre site near Westgate Mall.
UNC Health (search) also unveiled plans for a new community hospital in Wilmington on a 62-acre site at South 17th Street and Shipyard Boulevard, targeting a 2030 opening date pending regulatory approvals.
UNC Health (search), North Carolina's state-owned academic health system, is advancing two major hospital expansion projects aimed at increasing healthcare access and choice in rapidly growing regions of the state. The system has submitted a Certificate of Need (CON) application for a 92-bed hospital near downtown Asheville and separately unveiled plans for a new community hospital in Wilmington.
Asheville Proposal: A Second Bid for Buncombe County
UNC Health (search)'s latest CON application, submitted June 15, seeks approval for a 92-bed facility near Westgate Mall and Patton Avenue in Asheville. The proposed site encompasses six parcels totaling 21.5 acres of land, for which UNC currently holds a letter of intent to purchase, according to Alan Wolf, director of media relations at UNC Health.
The proposed hospital would offer a comprehensive range of services including emergency care, intensive care, neonatology, labor and delivery, cardiology, gastroenterology, radiology, psychiatry, speech pathology, physical therapy, and occupational therapy.
This application represents UNC Health (search)'s second attempt to establish a presence in Buncombe County. Earlier this year, the North Carolina Department of Health and Human Services (DHHS) rejected UNC's previous proposal — developed in conjunction with affiliate UNC Health Pardee — with regulators citing concerns about the "scope of services" and the project's "financial feasibility." One specific criticism was that the previously proposed location sat too close to UNC Health Pardee. The new site is approximately 10 miles north of that earlier location.
"We look across the state at areas that we identify as having some gaps. We think that there should be more choice in that region, we think that patients are asking for more access, for more options in terms of care, and especially in terms of higher level care that UNC Health (search) can provide," said Alan Wolf.
A hearing on the Asheville application is scheduled for August, with a final ruling expected in December.
The move comes amid ongoing controversy surrounding the region's dominant provider, Mission Hospital. Since being purchased by Nashville-based HCA in 2019, Mission has faced an exodus of physicians and nurses, understaffing challenges, and four Immediate Jeopardy warnings from the Centers for Medicare and Medicaid Services since 2021 — sanctions connected to nine patient deaths. Despite these issues, state regulators awarded Mission 95 additional beds in March, a decision that surprised local officials who had advocated for alternative providers.
Novant Health (search) confirmed it also applied for 20 acute care beds from this most recent CON cycle. If approved, those beds would be incorporated into the Novant Health Asheville Medical Center currently under development on a 24-acre site in Biltmore Park Town Square.
Wilmington Plans: Targeting 2030 Opening
Separately, UNC Health (search) announced plans for a new community hospital in Wilmington, proposed for a 62-acre site at the southeast corner of South 17th Street and Shipyard Boulevard. The location was selected for its "accessibility and geographic infill capacity in serving a rapidly growing region," according to a news release from the provider.
"As a Wilmington native, I've seen firsthand the challenges families face when specialty care isn't available in their own community," said UNC Health (search) CEO Dr. Cristy Page. "This is what 'care closer to home' looks like: a community hospital, backed by a statewide, state-owned academic health system, designed to bring the additional services this growing community has asked for."
The Wilmington facility would offer specialties including emergency care, cardiology, oncology, OBGYN, and other services, with a target opening date of 2030, pending regulatory approvals through the state's CON process.
The Wilmington project follows the April appointment of former Novant Health (search) executive Ernie Bovio as regional president for UNC Health (search)'s southeast coastal market. "As I've listened to my own neighbors and community members across the region, I've heard a clear message: Wilmington is ready for more choice in healthcare — and UNC Health is ready to deliver it," Bovio said.
The initiative has drawn support from Wilmington Health (search), the largest independent, physician-owned practice in the region, whose providers are expected to join the medical staff of the new hospital. "Wilmington Health has served this community for more than 50 years, and we know firsthand that our patients are interested in choice," said Wilmington Health CEO Jeff James.
Academic Health System Footprint
UNC Health (search) currently operates a network of 20 hospitals, hundreds of clinics, and maintains an affiliation with the UNC School of Medicine. In the western North Carolina region, the system already has a presence through a long-term management agreement with UNC Health Pardee, a 222-bed community hospital based in Hendersonville that is owned by Henderson County. That relationship, initiated in 2011, was extended in 2024 for an additional 15 years. UNC Health also operates the UNC Health Sciences campus at the Mountain Area Health Education Center (MAHEC), which trains doctors and other healthcare providers.
"As these communities grow, our goal is to grow along with them to ensure increased access to care, closer to home," said Dr. Cristy Page.