All 11 members of Luzerne County council voted Tuesday night to approve Tenor Health Foundation's financing proposal to purchase Wilkes-Barre General Hospital.
County spokeswoman Colleen Connolly confirmed that the council authorized Tenor’s plan to borrow up to $72 million in tax-exempt revenue bonds to finance its planned acquisition of the hospital. Tenor also proposed to pay Luzerne County $850,000 annually as part of a payment in lieu of taxes, or PILOT, agreement.
U.S. Rep. Rob Bresnahan said the council’s approval marks a big step in Tenor's plans to purchase Commonwealth Health hospitals in Wilkes-Barre and Scranton. Officials have said they expect that deal to close before the end of this year.
“This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties,” Bresnahan said. “Wilkes-Barre General, Moses Taylor and Regional Hospital are cornerstones of our community, and the people who work and seek care there deserve a system that puts the patients and staff first. I appreciate the Luzerne County Council’s hard work to move this process forward, and I’ll keep fighting to make sure this transition strengthens care, protects local jobs, and delivers the quality health services our families rely on every day.”
Tenor CEO Radha Savitala also supported the council’s vote.
“Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on,” Savitala said. “We are grateful to Rep. Bresnahan and the Luzerne County Council for their collaboration and continued involvement in maintaining quality healthcare access for Northeastern Pennsylvania. We look forward to continuing to work with Rep. Bresnahan, the Luzerne County Council and local leaders and stakeholders as we move toward a stronger future for these hospitals."
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.
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.
Tenor’s involvement came after months of searching for a new buyer, after a previous deal with Woodbridge Healthcare, Inc. fell through last November.
Local foundations stepped in to financially support the struggling hospitals after the Woodbridge deal collapsed.
Tenor and CHS signed a purchase agreement in October for the three hospitals, saying they expected to close the deal by year's end, subject to securing funding.
