Pennsylvania approves sale of 3 hospitals in long-sought deal

There has been a lot of uncertainty about the future of three hospitals in northeastern Pennsylvania, but a deal to sell the facilities has taken a significant step forward.

Tenor Health Foundation reached a deal last fall to buy the three hospitals from Community Health Systems, Inc. This week, the Pennsylvania Department of Health indicated it has signed off on the transaction.

Under the deal, Tenor would acquire Wilkes-Barre General Hospital, a 369-bed facility in Wilkes-Barre; Regional Hospital of Scranton, a 186-bed facility, and Moses Taylor Hospital, a 122-bed hospital in Scranton.

The health department told Chief Healthcare Executive® that the agency notified Tenor Health Foundation that its change of ownership application has been approved.

But the health department did attach some provisions to its approval of the transaction.

Tenor must provide an annual “capital resources and liquidity plan” and must spell out how it will meet its financial obligations of operating the hospitals.

In addition, Tenor must give the health department a “comprehensive monthly summary of the hospitals’ Quality and Safety Program which will identify, outline, and assess problem prone areas and performance improvements undertaken by the hospital to address those areas.”

Corinne Cianfichi, an occupational therapist at Regional and Moses Taylor hospitals and the chapter president of SEIU Healthcare PA, said in a statement released by the union that staff are “hopeful and relieved” by the prospect of saving the facilities.

“Our hospital is absolutely essential for the health and economy of our entire area. Now we finally have clarity on a direction for the next chapter of this hospital and our future,” she said.

Cianfichi also said that Tenor has agreed to honor the union contract.

“We expect Tenor to work hard and invest resources, and we will work hard to take care of our patients and make our hospital successful,” she said. “We look forward to working with Tenor to preserve and expand a full range of services and good, family-sustaining jobs, so we can provide the quality healthcare our community deserves.”

Pennsylvania elected officials have said they have been anxious to see improvements in the three hospitals in the Scranton area.

Pennsylvania State Rep. Bridget Kosierowski, a Democrat representing the Scranton area, said on Facebook that she appreciated community partners and Gov. Josh Shapiro’s administration for their work to preserve the hospitals.

“As Tenor moves forward, my focus remains on protecting healthcare workers and ensuring continued access to quality care,” Kosierowski said. “This moment also reminds us that hospitals across Pennsylvania are under real strain — and healthcare must always be treated as the lifeline it is.”

As many as 12 to 14 Pennsylvania hospitals are at risk of closure in the next five years without more funding, according to a report released this month by the Hospital and Healthsystem Association of Pennsylvania.

Community Health Systems has been trying to sell the hospitals for some time.

In August 2024, CHS initially announced a deal to sell the three hospitals to WoodBridge Healthcare, Inc. in a $120 million transaction.

But in November 2024, the parties announced that the deal would not be taking place after all. WoodBridge said that it was not able to put together the financing to buy the hospitals.

A for-profit system based in Tennessee, Community Health Services has been divesting other hospitals in recent years. Just this month, the health system announced its plans to sell the Crestwood Medical Center in Huntsville, Alabama to Huntsville Hospital Health System. Huntsville has agreed to buy the 180-bed hospital in a $450 million transaction.