Three Pennsylvania hospitals are close to being sold, again

After previous efforts to sell three Pennsylvania hospitals fell through, Community Health Systems, Inc. says it has reached a deal to divest the facilities.

Community Health Systems, Inc. says it has reached a deal to sell three hospitals in Pennsylvania to Tenor Health Foundation. Under the deal, Tenor would acquire Wilkes-Barre General Hospital, above, Regional Hospital of Scranton, and Moses Taylor Hospital.

CHS says it has reached a definitive agreement to sell three hospitals in northeastern Pennsylvania to Tenor Health Foundation. CHS announced the agreement last week.

Under the deal, Tenor Health Foundation 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.

Regulators still must sign off on the transaction. CHS did not disclose the financial terms of the deal.

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

But last November, the parties announced that the deal would not be taking place after all. WoodBridge said at the time that it was not able to put together the financing to buy the hospitals. WoodBridge also said CHS “has gone out of its way to help get this deal done including significant concessions on their part.”

In announcing the new deal with Tenor, CHS said the company has “worked in collaboration with the office of Pennsylvania Governor Josh Shapiro and members of the state General Assembly to identify another operator to sustain the Scranton operations and care for the community. Exhaustive outreach was made to regional and national organizations.”

CHS says that the deal “is contingent on Tenor Health Foundation finalizing funding.”

Assuming the funding is secured, CHS says it expects the deal to be closed quickly, with the transaction being complete within the fourth quarter of this year.

U.S. Rep. Rob Bresnahan, Jr., a Republican whose district includes the Scranton area, said he hopes that the deal can be finalized to ensure access to health care in the region.

“I am encouraged by this positive step toward ensuring continuity of care for our community,” Bresnahan said in a statement.

“These hospitals are essential to Scranton and the broader region, not only as providers of critical health services, but as major employers and anchors of our local economy,” he said. “My team and I will continue to work closely with all local, state, and federal leaders involved to help bring this agreement across the finish line and ensure that quality, accessible care remains available to everyone in Northeastern Pennsylvania.”

Bresnahan noted that he and the Pennsylvania governor’s office have been working to mediate the negotiations.

Pennsylvania elected officials have said they are anxious to see improvements in the three hospitals in the Scranton area. Former U.S. Sen. Bob Casey Jr., a Pennsylvania Democrat and Scranton native, criticized CHS’ management of the hospitals. In a July 2024 letter to CHS, Casey said CHS hasn’t invested sufficiently in the hospitals, and he urged the company to sell the facilities.

On its website, Tenor Health Foundation said it was established to “own, manage, and turn around financially challenged hospitals.”

Earlier this year, Tenor acquired the former Sharon Regional Medical Center in western Pennsylvania. The facility closed in January, but it reopened in March and is now known as Sharon Regional Health System.

CHS has sold a number of hospitals in recent years. The for-profit system, based in Franklin, Tennessee, operates 70 hospitals in 14 states.

Pennsylvania has also dealt with the closure of Crozer Health and its two hospitals, Crozer-Chester Medical Center, and Taylor Hospital, in the Philadelphia suburbs. Prospect Medical Holdings, the owner of Crozer Health, said it had no choice but to shut down the health system earlier this year after filing for bankruptcy.