The future of three area hospitals remains in limbo as a deal between Commonwealth Health Systems and Tenor Health Foundation awaits regulatory approval.
A Dec. 31 letter obtained by WVIA sent on behalf of Michael B. Clark, the CEO of Wilkes-Barre General Hospital and David E. Loving, the Interim CEO of Regional Hospital of Scranton, said: “The ownership transition of Commonwealth Health will not be completed today as Tenor Health and the Pennsylvania Department of Health are still working to finalize the necessary approvals. The goal remains to complete the closing as soon as possible.”
Both health systems pointed to the Department of Health as the reason for the holdup.
“The Pennsylvania Department of Health has not yet concluded its work on the necessary approvals for the ownership transition of Commonwealth Health to Tenor Health, which is why the transaction has been delayed. We hope the reviews will be completed soon, but we don't currently know how long this process will take,” said CHS spokesperson Tomi Galin.
Tenor remains in conversation with CHS.
“We are committed to the closing of the transaction and stand ready to close once approval is obtained,” said Tenor CEO Radha Savitala.
The state Department of Health is still reviewing Tenor's application to purchase the hospitals.
"The Pennsylvania Department of Health is committed to ensuring patient safety and responsible hospital ownership throughout this process, and has received Tenor Health Foundation’s application to acquire the hospitals currently owned by Commonwealth Health Systems in Scranton and Wilkes-Barre," department spokesman Neil Ruhland said Thursday. "The Department continues to review the change-in-ownership (CHOW) application."
Healthcare workers reach out to DOH about delayed deal
Healthcare workers represented by the SEIU Healthcare PA union at Regional sent a letter to the state’s Department of Health expressing their frustrations with the delayed deal.
The letter, in part, reads:
“Previously, there was a public announcement that a deal to keep our hospital open would be finalized by January 1. Since then, our workforce has had limited information regarding the status of the proposed ownership transition, which has created serious concerns among the broader community and frontline employees. While we recognize the Department’s responsibility to ensure compliance, safety and regulatory integrity, we respectfully urge that those considerations be balanced with the urgent need for stability, transparency, and continuity of care.”
“As a union workforce, our priorities have been clear and consistent: protect access to healthcare for our region and preserve good union jobs for the workers who deliver that care regardless of ownership,” the letter continues. “Our nurses, technicians, aides, dietary and environmental services, pharmacists – every staff member at our hospital is deeply invested in our patients and our community. We stand ready to continue providing high-quality care and to work constructively with any owner committed to sustaining the very best care at our facilities.”
“We respectfully ask the Department to consider the human and community impact of this transition and to do everything in your power to preserve healthcare access, workforce stability, and the long-term viability of our hospitals,” the letter said.
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 in November of 2024.
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.
