Iredell Health System Announces Intent to Acquire Davis Regional Psychiatric Hospital

Effective today, Iredell Health System has signed a definitive agreement to acquire Davis Regional Psychiatric Hospital from subsidiaries of Community Health Systems, Inc. (NYSE: CYH).

“For more than 70 years, Iredell Health System has provided high-quality healthcare for our community. Davis Regional Medical Center, now known as Davis Regional Psychiatric Hospital, has also been an integral part of the healthcare landscape in our area for more than 100 years,” said John Green, President & CEO of Iredell Health System. “We are excited to bring these two Statesville traditions together as one single healthcare entity. Doing so will provide more comprehensive, local healthcare with the combined expertise – totaling over 170 years – of both organizations.”

The transaction is subject to regulatory approvals and is expected to close sometime this fall.

While plans for the future of Davis are not yet solidified, Iredell Health System intends to keep the psychiatric facility open and retain current Davis employees.

“These are good healthcare workers, and we want them to remain in our community to take care of their friends, family and neighbors,” said Green. “We plan to extensively evaluate our community’s healthcare needs as we consider what the best course of action will be for the Davis facility, but our first priority is to keep it open and sustainable.”

Davis Regional first began in 1920, when Dr. James Davis returned to Statesville after serving in the U.S. Army. He opened the Carpenter-Davis Clinic with Dr. Forest Carpenter, an eye, ear, nose and throat specialist, on South Center Street (later the Carolina Hotel). After Dr. Carpenter died in 1923, Dr. Davis built his own hospital on West End Avenue. In 1937, Dr. Davis gave the hospital to a nonprofit corporation and became medical director and chairman of the board. He continued active practice at the hospital until his death in 1955. In the years that followed, Davis Hospital was purchased by Hospital Corporation of America, a for-profit hospital chain, and relocated to Old Mocksville Road. Ownership periodically changed over time until it was acquired by its current subsidiary. It transitioned from an acute care hospital to a behavioral health facility in the fall of 2022, fulfilling a need for more mental health treatment facilities nationwide.

Iredell Health System was created in 1952 by a group of citizens who envisioned a hospital dedicated to the wellbeing of the community. Their vision paved the way for Iredell Memorial Hospital, a nonprofit organization, to open its doors on May 1, 1954. Over the last seven decades, the hospital has grown into a thriving health system providing comprehensive healthcare to Iredell and surrounding counties, with multiple campuses and other offsite locations. Throughout the ever-evolving healthcare landscape, Iredell Health System has adapted and led the way in Iredell County, investing in the latest technology and implementing the programs and services that the community has needed.

The desire to always provide for the community aligns with today’s announcement.

“We recognize the critical need for behavioral health services in our area — and throughout all of North Carolina — and will strive to be a part of the solution for this crisis on a local level with Davis,” said Green, noting that adding other healthcare services to the facility may also be considered in the future. “As Iredell County continues to grow, healthcare needs will also evolve. This is an important investment in our community and allows us to continue to expand with those needs. We look forward to continuing to care for our community for many years to come while giving our citizens the opportunity to remain local to get the healthcare they need and deserve.”