Officials confirm CHS, Tenor Health sign deal for sale of Scranton, Wilkes-Barre hospitals

Commonwealth Health System and Tenor Health Foundation have signed a purchase agreement for the sale of Commonwealth's three Northeast Pennsylvania hospitals, associated clinics and outpatient centers by the end of this year, officials said Friday.

The move comes over two months after Commonwealth Health and Tenor signed a letter of intent for CHS to sell Tenor Wilkes-Barre General Hospital, Regional Hospital of Scranton and Moses Taylor Hospital in Scranton.

U.S. Rep. Rob Bresnahan initially confirmed the news Friday afternoon, with statements from Commonwealth and Tenor officials following shortly afterward.

"The transaction is subject to standard regulatory review and contingent on Tenor Health Foundation finalizing its funding. Once funding is secured, the transaction is expected to be completed soon thereafter in the fourth quarter this year," Commonwealth officials wrote in an emailed statement.

The price was not disclosed.

Tenor Health Foundation CEO Radha A. Savitala said her organization is "delighted to announce the execution of the definitive agreement to bring the three Commonwealth Health hospitals into the Tenor Health Foundation family."

"This acquisition exemplifies our organization's commitment to preserve valuable healthcare resources — specifically in the most vulnerable communities," Savitala wrote in an emailed statement.

"We are grateful to community leaders for engaging with us as well as the medical staff and hospital staff who continue to provide the much-needed services for these hospitals. We look forward to continuing to engage with all key stakeholders to ensure a seamless acquisition and transition," she added.

Who's who in this deal

Commonwealth Health is owned by for-profit Tennesee-based Community Health Systems Inc.

Tenor Health Foundation, a California-based nonprofit, “was formed to identify, own, manage, and turn around financially challenged hospitals,” according to its website.

Tenor's first acquisition was Sharon Regional Medical Center in Mercer County. That facility, previously under private ownership, closed in January. It reopened under Tenor's ownership in March.

The announcement comes after months of searching for a new buyer, after a previous deal with Woodbridge Healthcare, Inc. fell through last November.

According to CHS' official statement Regional Hospital of Scranton has 186 beds, Moses Taylor Hospital has 122 beds, and Wilkes-Barre General has 369 beds.

Regional and Moses Taylor operate under one license. CHS consolidated the emergency rooms at the Scranton facilities into one in 2023, effectively closing Moses Taylor’s ER operations.

Foundations have been supporting hospitals

Local foundations stepped in to financially support the struggling hospitals after the Woodbridge deal collapsed.

Participating in the funding arrangement are The Scranton Area Community Foundation, AllOne Foundation & Charities, Luzerne Foundation, Moses Taylor Foundation, NEPA Health Care Foundation, Allied Services, The Wright Center, and the Scranton Chamber of Commerce.

Charlie Lyons, a spokesperson for the organizations, on Friday said they are "encouraged" and "look forward to hearing more about the details of this agreement and about Tenor’s long-term plans for sustaining and strengthening the quality medical services and maintaining the current workforce at the hospitals."

"Our foundations have been working for more than a year with state and local leaders and others in the community to maintain services and protect the workforce at these hospitals while a long-term resolution was pursued. As part of that collaboration, we committed several million dollars earlier this year to support the Scranton hospitals’ operations and keep the doors open while a search for a buyer proceeded," Lyons said.

"We are pleased that our investment provided the time needed for a sale of the facilities that can keep them open," he added. "Once Tenor’s acquisition of the hospitals is final, our foundations stand ready to work with Tenor, our government representatives, and others in the community to maintain and strengthen these critical community health care assets for the long term."

Bresnahan 'encouraged' by news

"I am encouraged by this positive step toward ensuring continuity of care for our community. 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," Bresnahan (R-Dallas Twp.) 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 Northeast Pennsylvania," he added.

Cognetti: 'Cautiously optimistic'

Scranton Mayor Paige Cognetti said the city will support Tenor as they seek to close the deal.

"Our goal has always been to keep the doors of Regional and Moses Taylor Hospitals open, and to keep the dedicated staff employed. After months of conversations with Tenor, and with Gov. Shapiro’s administration, state representatives, and community foundation leaders, I am cautiously optimistic that this sale means we will continue to have quality healthcare right here in Scranton," said Cognetti, a Democrat who is seeking her party's nomination to challenge Bresnahan for the 8th District seat in the 2026 midterm election.

"We will do what we can to support Tenor as they seek the licenses and the financing they need to maintain and improve the hospitals," Cognetti added.

"Scranton is the beating heart of NEPA and it is critical that the city remains a healthcare hub for our residents, and for all of NEPA," she said.