In a surprising turn of events, several local nonprofits decided to halt their financial support for two struggling hospitals in Scranton, Pennsylvania, after months of subsidizing Commonwealth Health Systems’ losses. This decision, made in August, was confirmed by U.S. Representative Rob Bresnahan, who has been actively involved in the situation.
Nonprofits Complete Their Commitment
A spokesperson for the foundations involved clarified that the support was always intended to last only 90 days. “The foundations fulfilled their commitment, and there was no request for additional funding at that time,” the spokesperson noted.
Rep. Bresnahan highlighted the gravity of the situation, stating, “That’s basically where the foundations came and said, ‘Listen, we’ve [exhausted] all of the funds that we are willing to.’ That’s where the pinch point really came, that, basically, CHS was hemorrhaging cash by keeping the hospitals open.”
Potential Buyers and Federal Intervention
During this critical period, The Wright Center and Tenor Health Foundation emerged as potential purchasers for the Regional Hospital of Scranton and Moses Taylor Hospital. However, neither party was prepared to finalize an agreement with CHS.
Concerns grew that CHS might issue a 90-day closure notice. Bresnahan emphasized the urgency: “The closure was imminent, dangerously close, like we were preparing for a notice at any minute of the day, and that’s really where we escalated our conversations from the federal level.”
Efforts to seek comments from Governor Josh Shapiro’s office and state Representative Bridget Kosierowski were unsuccessful. CHS also remained unavailable for comment.
Foundations’ Clarification and Continued Engagement
The funding arrangement included contributions from 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, speaking on behalf of these organizations, explained, “In April of last year, CHS notified the Governor‘s Office that a hospital closing was imminent. Local foundations and other community groups, agreed to a request to support the hospital workforce by contributing funds for the hospitals’ continued operations for a period of 90 days to allow CHS more time to negotiate a potential sale of the hospitals.”
He continued, “The foundations and community partners fulfilled that commitment and contributed millions of dollars to meet that request. At the end of the 90-day period, CHS continued negotiations with potential buyers, and notified the community groups through the Governor‘s Office that it would provide a 30-day notice before announcing any closure if the negotiations fell through.”
Federal Pressure to Prevent Closure
To keep the hospitals operational, Bresnahan intervened by engaging with CHS leadership and federal officials. This resulted in a temporary extension of operations while the search for a buyer continued.
“Obviously, acquiring a functioning hospital is significantly easier than trying to repair one that has already been shut down. We were able to work with Commonwealth Health, and convince them to keep the hospital functioning where they would be willing to cover their losses almost $2 million a month,” Bresnahan stated.
Bresnahan’s team maintained pressure on CHS, ensuring open lines of communication with all involved parties to prevent misinformation and keep the hospitals’ doors open.
Current Status of the Sale
In October, Tenor Health Foundation and CHS finalized a purchase agreement for the Scranton hospitals and Wilkes-Barre General Hospital, with the expectation of closing the deal by year’s end. The transaction is currently pending approval from the Pennsylvania Department of Health.
Neil Ruhland, a department spokesman, confirmed, “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.”
Bresnahan remains cautiously optimistic, expressing readiness to assist at the federal level as the deal progresses.
Jackson Breslin
/
WVIA News
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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 last 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.
