State Rep. Bridget Kosierowski said there’s a possibility that Commonwealth Health Systems (CHS) and Tenor Health Foundation will reach an official sales agreement for three area hospitals by the end of this month.
The potential deal includes Wilkes-Barre General Hospital, Regional Hospital of Scranton and Moses Taylor Hospital in Scranton.
“I'm very supportive of [Tenor], and I work closely with them,” said Kosierowski, a Democrat from Waverly. “We are all being very supportive. It's just getting to that financial stability and those monies and who they come from, and that's where we're at right now, but I'm still very hopeful.”
A spokesperson for CHS echoed Kosierowski’s hopeful attitude.
“We remain optimistic about a potential transaction but have no updates to provide at this time,” said Annmarie Poslock from Commonwealth Health. “Patients across our network are continuing to receive quality care thanks to the employees and physicians on the medical staff and we appreciate their steadfast focus and commitment.”
Tenor Health Foundation, a California-based nonprofit, “was formed to identify, own, manage, and turn around financially challenged hospitals,” according to its website.
Tenor did not respond to a request for comment.
Long search for a new buyer for CHS hospitals
CHS signed a letter of intent with Tenor in August to sell the three hospitals. The announcement came after months of searching for a new buyer, after a deal with Woodbridge Healthcare, Inc. fell through last November.
David E. Loving, interim CEO for Commonwealth Health's Scranton operations, sent a memo to the company's board of trustees, medical staff and employees to notify them of the letter of intent.
Negotiations after the failed sale originally included only the two Scranton hospitals.
However, as the memo reads, "While the newest contemplated transaction was originally to include only the Scranton assets, it became apparent that without the inclusion of Wilkes-Barre, there was not a deal that would keep services in both communities."
The letter does not indicate a final sale.
"When a definitive plan is reached, I will provide an update," Loving said in the memo.
Wilkes-Barre General Hospital’s Board opposed the potential sale, appealing to the governor’s office to stop the sale.
But, Kosierowski said she and other advocates have appealed to the hospital’s board since then.
“They understand the importance of continuity of care,” Kosierowski said. “They understand that means [both] Wilkes- Barre and Scranton campus, and one is not more important than the other.”
Parties involved in hospital negotiations
Wilkes-Barre General Hospital’s board chair Justin Matus said he still has his hesitations.
“I have spoken with several area legislators, all of whom are deeply concerned about the proposed sale of the three Commonwealth Hospitals,” Matus said. “I have also personally spoken with senior executives at UPMC and officials at the State’s Department of Health, but to date I have not heard anything further."
He said, for him, one "very large question" remains.
"Where will the financing come from and at what price? We on the board only want the best for our patients and the community,” he said.
Efforts to reach UPMC about the hospital system's conversation with Matus were unsuccessful.
The state’s Department of Health clarified that it has not been directly involved in negotiations.
“Senior administration officials were involved in bringing all parties together to establish the temporary funding arrangement that has allowed these vital community hospitals to remain open as all parties work toward a long-term solution," Department of Health spokesperson Mark O’Neill said.
Local foundations have stepped in to financially support the struggling hospitals.
He said the Shapiro administration met with potential buyers "to emphasize the importance of a community-led and financially responsible solution."
Kosierowski said she’s been working with U.S. Rep. Rob Bresnahan’s office.
“They have been laser focused on this. I know that they have financial support that they're going to be able to access through the stabilization fund, the Rural Health Care Fund. They will definitely be helpful, but that's a little bit more long term than I need now,” Kosierowski said.
Bresnahan said the issue has been a priority.
“This isn’t a Republican or a Democrat issue — this is about fighting for the people of Northeastern Pennsylvania,” the congressman said. “Since before I was sworn in, my team and I have worked to navigate every possible solution to ensure a continuity of care in Northeastern Pennsylvania. This is an issue that impacts everyone."
Bresnahan said his team has been working with Kosierowski to find a sustainable solution.
"Our community partners, known as ‘the foundations’ have been instrumental in these negotiations and keeping the doors open during this process. We will continue to work with State Rep. Kosierowski, the governor’s team, and federal partners to maintain these hospitals,” he said.
What’s next for the hospitals?
Kosierowski wants a sales agreement by the end of the month. She’s already brainstorming backup plans if that falls through.
“The next step is a sales agreement and then if we don't have a sales agreement, then we have to think about what the other hospital systems can absorb, like Geisinger, like Lehigh Valley, what can they absorb from the patient population,” she said.
She said access to quality healthcare remains her priority for her constituents and the region.
“I don't care if you're Republican, Independent, Democrat, it doesn't matter. You need health care, especially in an emergency situation, especially in OBGYN world. You need to have that access immediately. And that transcends the party affiliation,” Kosierowski said.
