Acquisition | Novant Health and Community Health System

To assess the degree of similarity between the announced acquisition between Novant Health & Community Health Systems, we conducted an analysis of the acquired hospital for Novant Health (Lake Norman Regional) and the largest hospital for Novant Health, Forsyth Memorial Hospital. The analysis reveals that Lake Norman Regional and Forsyth Memorial Hospital have a SimilarityIndex™ M&A Score of 57.90, or a distance of 42.10. Said differently, using Forsyth Memorial Hospital as the index hospital, Lake
Norman Regional is the 1,625th most similar hospital out of the 2,299 hospitals in the national analysis, revealing that there are many other hospitals that are operationally, financially and competitively more similar. An M&A strategy driven by clinical, operational, and financial similarity would lead to different partners for each system. Lake Norman Regional’s data is sourced from FY2021 Cost Reports while Forsyth Memorial’s data is sourced from FY2020 Cost Reports.