The Future of Area Hospitals Hinges on Awaiting Regulatory Approval
The anticipated transfer of ownership of three hospitals in the region remains uncertain as Commonwealth Health Systems (CHS) and Tenor Health Foundation are waiting for regulatory clearance to finalize their agreement. The sale of Wilkes-Barre General Hospital, Regional Hospital of Scranton, and Moses Taylor Hospital was expected to be completed by the end of 2025.
A letter dated December 31, from Wilkes-Barre General Hospital CEO Michael B. Clark and Regional Hospital of Scranton Interim CEO David E. Loving, states, “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 cited the Department of Health as the cause of the delay.
CHS spokesperson Tomi Galin commented, “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.”
Meanwhile, Tenor Health Foundation remains engaged with CHS, with Tenor CEO Radha Savitala stating, “We are committed to the closing of the transaction and stand ready to close once approval is obtained.” The Pennsylvania Department of Health continues to assess Tenor’s application for acquiring the hospitals.
Department spokesman Neil Ruhland emphasized the department’s commitment to patient safety and responsible ownership, noting that the review process of Tenor’s change-in-ownership application is ongoing.
Healthcare Workers Voice Concerns Over Delayed Agreement
Healthcare workers at Regional Hospital, represented by the SEIU Healthcare PA union, have expressed their concerns to the Department of Health due to the delay. In their letter, they highlight the lack of information and the impact on the workforce and community: “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.”
The letter further stresses the union’s focus on protecting healthcare access and maintaining union jobs, urging the department to consider the implications of this transition on the community and employees: “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.”
Background on the CHS Hospital Deal
Commonwealth Health is operated by Community Health Systems Inc., a for-profit entity based in Tennessee. Tenor Health Foundation, a nonprofit, aims to manage financially troubled hospitals. Their inaugural acquisition was Sharon Regional Medical Center in Mercer County, Pennsylvania, which reopened under Tenor’s ownership in March after closing in January.
Tenor intends to purchase the Regional Hospital of Scranton, Moses Taylor Hospital, and Wilkes-Barre General. Notably, CHS had previously merged the emergency rooms at the Scranton hospitals, closing Moses Taylor’s ER operations in 2023. The search for a new owner began after a proposed deal with Woodbridge Healthcare, Inc. was terminated in November 2024. Local foundations have since provided financial assistance to the hospitals.
In October, CHS and Tenor signed a purchase agreement for the three hospitals, expecting to close the deal by the end of the year, pending financial arrangements.
“`
