Tenor Health System agreed to make an annual payment of $850,000 to Luzerne County if it purchases Commonwealth Health System-owned Wilkes-Barre General Hospital.
The Payment in Lieu of Taxes, or PILOT, Agreement would be paid annually as long as the health system remained nonprofit.
The agreement would go into effect six days after enactment if the Luzerne County Council approves the agreement at tonight’s council meeting.
Tenor’s plan to borrow up to $72 million in tax-exempt revenue bonds to finance the hospital needs approval by the council, which is on tonight’s voting agenda as well. If approved by the council, the resolution would be effective immediately.
The who’s who of the CHS hospital deal
Commonwealth Health is owned by for-profit Tennessee-based Community Health Systems Inc.
Tenor Health Foundation is a nonprofit that "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, Pennsylvania. That facility, previously under private ownership, closed in January. It reopened under Tenor's ownership in March.
Tenor is looking to purchase Regional Hospital of Scranton and Moses Taylor Hospital in Scranton, in addition to Wilkes-Barre General.
Tenor Health Foundation CEO Radha A. Savitala did not respond to a request for comment on tonight’s county council vote.
Tenor’s involvement came after months of searching for a new buyer, after a previous deal with Woodbridge Healthcare, Inc. fell through last November.
Tenor and CHS signed a purchase agreement in October for the three hospitals. Officials told WVIA that a final deal would happen by the end of this year.
Supporting Regional Hospital employees through uncertainty
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.
Local foundations stepped in to financially support the struggling hospitals after the Woodbridge deal collapsed.
Scranton Mayor Paige Cognetti today presented a proclamation for “Gratitude Week for Regional and Moses Taylor Hospital Workers.” Scranton’s City Hall will be illuminated purple, the union color for SEIU Healthcare Pa., which represents many of the hospitals' healthcare workers, from Nov. 25 to 30.
“Whereas, the workers of Regional and Moses Taylor Hospitals, including nurses, technicians, service and support staff, transporters, dietary, environmental services workers, clerical and administrative staff, physicians and all others who contribute to patient care, have demonstrated exceptional dedication throughout a challenging and uncertain year; and whereas, Regional Hospital, which includes the Moses Taylor Campus, is essential for the health and economy of NEPA, and workers have advocated tirelessly to protect quality services, preserve union jobs and ensure community voices are heard; and whereas, during a time marked by the anxiety of potential ownership changes, Regional workers have shown resilience by continuing to show up for patients, families, and one another,” the proclamation states in part.
“Therefore, I, Mayor Paige G. Cognetti, proclaim November 25 - 30, 2025, as ‘Gratitude Week for Regional & Moses Taylor Hospital Workers,’ and encourage all community members to express appreciation for the workers who have kept Regional Hospital strong throughout this year of uncertainty and change.”
