In a significant development for healthcare in Northeastern Pennsylvania, the Luzerne County council unanimously approved Tenor Health Foundation’s proposal to secure funding for the acquisition of Wilkes-Barre General Hospital. This decision signals a pivotal moment in Tenor’s efforts to revitalize local healthcare facilities.
According to county spokesperson Colleen Connolly, the council has permitted Tenor to issue up to $72 million in tax-exempt revenue bonds to facilitate the hospital’s purchase. As part of the agreement, Tenor will also provide Luzerne County with $850,000 annually under a payment in lieu of taxes (PILOT) arrangement.
U.S. Rep. Rob Bresnahan highlighted the significance of this approval, stating, “This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties.” He emphasized the importance of maintaining quality care and job protection at the hospitals, which play crucial roles in the community.
Radha Savitala, CEO of Tenor, expressed appreciation for the council’s decision, noting, “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.”
Key Players in the Hospital Acquisition
Commonwealth Health is currently owned by Community Health Systems Inc., a for-profit entity based in Tennessee. Tenor Health Foundation, a nonprofit organization, aims to acquire and manage financially troubled hospitals. Their mission is evident from their recent activities, including the reopening of Sharon Regional Medical Center in March, after its closure under previous private ownership.
Tenor’s acquisition plan includes not only Wilkes-Barre General but also Regional Hospital of Scranton and Moses Taylor Hospital. These Scranton-based hospitals are currently operating under a single license, following the consolidation of their emergency rooms by CHS earlier this year.
The search for a new buyer began after a previous agreement with Woodbridge Healthcare, Inc. was terminated last November. During the interim, local foundations provided financial aid to the struggling hospitals.
In October, Tenor and CHS finalized a purchase agreement for the three hospitals, with plans to complete the deal by the end of the year, contingent on securing the necessary funding. For more details, visit their purchase agreement announcement.
