Just days after receiving state approval, Tenor Health Foundation and Commonwealth Health closed a deal selling Tenor three Northeast Pennsylvania hospitals, both companies announced Monday morning.
The deal for Wilkes-Barre General and Scranton’s Moses Taylor and Regional hospitals was completed Sunday, they said.
According to CHS, the deal was completed for $33 million cash plus a $15 million promissory note.
"Additional cash consideration may be received in one or more future periods contingent upon collections of certain patient accounts receivable during the 90-day period following the closing effective date,” a CHS release stated.
“This allows us to focus squarely on what matters most — our patients and the communities we serve,” Tenor CEO Radha Savitala said of the sale in a statement released Monday.
“We are grateful for the strong support of the community, including U.S. Representative Rob Bresnahan and Pennsylvania State Representative Bridget Kosierowski," Savitala added.
"As a nonprofit organization, Tenor Health Foundation remains committed to keeping high-quality care locally available and ensuring these hospitals remain strong, accessible, and responsive to community needs. We look forward to working collaboratively with all stakeholders to improve access to and the quality of healthcare,” Savitala said.
Process in focus
The deal comes after more than a year of searching for a new buyer after an initial deal between CHS and Woodbridge Healthcare, Inc. fell through in November 2024.
Tenor publicly emerged as a second potential buyer in August 2025 and a deal was signed in October.
Tenor Health Foundation is a nonprofit "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 hospital, previously privately owned, closed last January. It reopened under Tenor's ownership in March.
Tenor submitted its change-of-ownership application for the NEPA hospitals to state officials in November. The state’s Department of Health approved the application last Wednesday.
Savitala is focused on what’s next.
“A sigh of relief, but I think that'll be short only because the real hard work begins now post acquisition and working with the teams and boots on the ground, so we've got a lot of hard but important work to do, and really, this is, this is what keeps us going. So we are thrilled, but we also have a long road ahead of us,” Savitala said Friday as the sale was nearing closure.
Savitala emphasized that there would be no interruption of services through the transition.
“All hospitals, clinics, and services remain fully open, and the physicians and staff patients know and trust remain in place,” she said in a statement Monday.
Elected officials react to Tenor purchase
State Rep. Bridget Kosierowski (D-Lackawanna) worked on securing a new buyer since the previous one fell through in 2024.
“I am relieved, but I'm also not. The work actually gets harder,” Kosierowski said.
She expects Tenor to work with the community partners through the transition.
“There's some requirements that they will meet. Financial transparency, major decisions that the hospital is going to make, that Tenor will make. They must be transparent about that. The workforce stability and the hospital viability relies on this. There are criteria that Tenor must adhere to. We will continue to be partners, but the work is on Tenor now to make sure this hospital system stays thriving and accessible to our community,” Kosierowski said.
U.S. Rep. Rob Bresnahan (R-Luzerne) celebrated the sale.
“Today is a landmark day for Scranton, Wilkes-Barre and families across NEPA. After months of hard work, together, we got this done, and now the focus is on protecting the continuity of care and keeping our hospitals strong for the people who rely on them. I will keep working with local, state, and community partners to make sure patients can count on quality care close to home,” Bresnahan said.
Scranton mayor welcomes Tenor, while Wilkes-Barre mayor concerned about loss in revenue
Scranton Mayor Paige Cognetti welcomes Tenor.
“It is great news for Scranton that there is a buyer, a transaction sealed, for the Regional and Moses Taylor hospitals. We need that health care in our city. We want to make sure that those 800 folks are able to stay in their jobs and keep caring for us,” she said.
She wants local voices represented in Tenor’s leadership.
“We have to make sure that the whole group of people with stakes have a seat at the table as we move forward. We want to make sure that this is a long-term solution to healthcare here in Scranton, not a short-term one,” Cognetti said.
Wilkes-Barre’s Mayor George Brown said that CHS paid the city about $750,000 a year in property taxes. He’s concerned about the revenue loss.
“When I asked them for a [payment in lieu of taxes] PILOT, I was told, ‘No, you will not get a PILOT from Tenor Health. They gave a PILOT to the county of $850,000. They're giving the city nothing to make up for the loss of over $750,000 in annual taxes, and the loss is going to be significant to the city of Wilkes-Barre, and it's going to put a financial burden on the city taxpayers,” Brown said.
Brown said he notified Rep. Bresnahan about his concerns, and that the Congressman agreed to speak with Tenor.
“I'm hopeful that Tenor will be open to discussions on this pressing matter. But I'm going to tell you I will proceed in the appropriate manner legally to pursue and protect the city taxpayers interest,” Brown said. “So I would do what I have to do to try to secure some monies to offset the loss of over $750,000 and any way legally I can do that, I will do that to protect the residents of the city of Wilkes-Barre.”
Despite his concerns, he still looks forward to a partnership with Tenor.
“We're still going to address the needs of the hospital, and it will still be a very cooperative partner, because we have to be there for the patients that go there and the people that work there. So we're still here. We're still going to provide all the services that they need from the city of Wilkes-Barre,” Brown said.
Foundations ‘pleased’ that investments provided CHS with more time
A group of community organizations came together last summer to financially support the struggling hospitals. They gave “millions of dollars” over a three-month period to cover the Scranton hospitals’ losses.
“Our five local foundations are very pleased that Tenor Health has reached agreement with CHS to purchase the local hospitals to forestall any closures and continue the essential health care services at those facilities. We look forward to hearing more about Tenor Health’s immediate and long-term plans for sustaining the quality services and maintaining the current workforce at the hospitals,” said Charlie Lyons, a spokesperson for AllOne Foundation & Charities, the Luzerne Foundation, the Moses Taylor Foundation, the NEPA Health Care Foundation, and the Scranton Area Community Foundation, in a statement.
“The impacts of a potential hospital facility closure would have been devastating for the Northeastern Pennsylvania community, putting lives at risk, costing more than a thousand jobs, and eroding the local economy. The community’s most vulnerable – the poor, people with chronic diseases and conditions, and those with limited access to specialized care – would have been the hardest hit had any of the hospitals closed. So it is extremely good news that a closure has been averted,” Lyons continued.
“We are pleased that our foundations’ investments provided the time needed for a sale of the facilities that can keep them open. Again, we look forward to hearing more about the agreement and Tenor Health’s plans, but it is very good news that a solution was reached that can preserve the hospital’s critical medical services and maintain the committed and high-quality professionals who deliver them,” he said.
Editor's note: WVIA Healthcare Reporter Lydia McFarlane's position is supported through funding from Moses Taylor Foundation, AllOne Charities, Eureka Foundation, Wayne County Community Foundation and Community Foundation of the Endless Mountains.
