State approves 95 new beds for Mission Hospital, denies requests from competitors

BUNCOMBE COUNTY, NC — A planned expansion at Mission Hospital is raising new questions about competition and healthcare costs in western North Carolina after state health leaders approved dozens of new beds for the facility while denying similar requests from other hospitals.

The North Carolina Department of Health and Human Services approved Mission Hospital’s request to add 95 new acute care beds at its main campus in Buncombe County. The hospital says the expansion will be accommodated by building additional floors.

In a statement to News 13, Mission Hospital says, “We look forward to alleviating bed capacity constraints so that patients can get the high-quality, advanced care services only Mission can provide.”

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The decision has drawn concern from some local leaders, who point to already high healthcare costs in the region and recent safety violations at Mission.

“It is a puzzle to me why the state would give them more beds when they haven’t shown they can manage safely what they have right now,” said Sen. Julie Mayfield.

Mayfield and others argue the approval could limit competition in a region where options are already limited.

“The more beds that go to Mission Hospital, the less competition there is in the region. When there is more competition, costs come down, that has been something I have certainly supported, which is getting more meaningful competition for Mission Hospital in this region,” Mayfield said.

While Mission’s request was approved, proposals from AdventHealth Asheville and UNC Health West Medical Center, both for 129 beds, were denied.

In a statement to News 13, an AdventHealth spokesperson said, “We do not believe the decision is in the best interest of our community and will have profound impacts. We are currently evaluating appeal options that honor the community’s needs and voice.”

Meanwhile, Novant Health Asheville Medical Center and Novant Health received approval for 34 beds in Arden.

Healthcare analysts say the state’s process for distributing hospital beds does not primarily focus on future needs.

“Beds are allocated based on population growth primarily and then secondarily on the basis of prevalence of disease. Are there certain types of diseases that are more prevalent in certain parts of the country?” said Paul Keckley, the editor-in-chief of the Keckley Report.

Keckley describes the region’s healthcare system as a monopoly.

“Western North Carolina essentially has one big player that is primarily competing with a couple of regional player,” Keckley said.

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Keckley says costs in the region continue to rise.

“Healthcare in western North Carolina is price sensitive, but it’s not price driven and as a result, its costs are going up much faster than other services that people buy,” Keckley said.

All agencies have until April 27 to appeal the state’s decision.