From Staff Reports

ASHEVILLE, N.C. — UNC Health on June 29 agreed to purchase six parcels — about 22 acres — for $19.9 million at the Westgate Shopping Center off Patton Avenue in West Asheville. 

The health system plans to build a new 92-bed acute care hospital, called UNC Health West, in partnership with UNC Health Pardee. 

Following is the backstory on UNC Health’s quest to build a new hospital in Asheville::

• The new hospital plan: UNC Health filed a Certificate of Need application for the 92-bed hospital. It is projected to open in late 2032 and feature an emergency department, ICU, and a maternity ward. 

• The Westgate property: The 1950s-era shopping center is home to tenants such as Earth Fare and CVS. While there was initial concern that a hospital would force immediate closures, the system is evaluating construction timelines that will respect long-term leases. 

• The “two-hospital” strategy: This Westgate plan is a modified, relocated version of a 129-bed hospital UNC previously proposed for South Asheville. UNC Health is appealing a previous state denial of its earlier project, but submitted the Westgate application as a parallel effort. 

• WNC Healthcare Battle: UNC Health’s move is part of a larger push by major networks to challenge the dominant market hold of Mission Health and its owner, HCA Healthcare.

It also involves competitor AdventHealth, which has faced extensive legal battles seeking to build in the Asheville area

• Current status: While the purchase secures a 21.5-acre parcel, UNC is still navigating the state’s CON process. A public hearing is scheduled for August, with a final regulatory ruling anticipated later in the year.

In the aftermath of the sale of the property for a new medical facility, the Earth Fare store at 66 Westgate Parkway remains open and operating Earth Fare.

“While the Westgate Shopping Center has seen reports of a sale to facilitate a new medical facility, the grocer’s lease is active and it is serving the community as usual,” AI Overview noted. “The organic grocery chain has successfully rebounded in recent years, maintaining the Westgate location as one of its key surviving regional markets after a brief closure in 2020.”

Earth Fare was founded in 1975 in Asheville as Dinner for the Earth.