Nonprofit organization Tenor Health Foundation has signed a letter of intent with Community Health Systems to acquire Commonwealth Health, a three-hospital system in Scranton, Pa., spokespersons for both organizations confirmed with Becker’s.
Seven things to know:
1. The news comes nine months after Franklin, Tenn.-based CHS’ plan to sell Commonwealth Health to nonprofit organization WoodBridge Healthcare collapsed. That deal was valued at $120 million. Neither CHS nor Tener disclosed the price for their proposed transaction.
2. Commonwealth Health’s hospitals include:
- Regional Hospital of Scranton (186 beds)
- Moses Taylor Hospital in Scranton (122 beds)
- Wilkes-Barre General Hospital (369 beds)
3. The sale would see CHS exit the Pennsylvania market.
4. Tenor was founded by CEO Radha Savitala, an attorney who led transactions for Orange, Calif.-based Prime Healthcare for more than 10 years and worked with senior executives on growth strategies, according to the company’s website.
5. The newly formed nonprofit aims to own, lease and manage small to medium-sized hospitals with 50 to 200 beds. Its target market are hospitals that are at moderate or high financial risk and are critically or moderately essential to their communities.
6. The hospital turnaround company acquired Sharon (Pa.) Regional Hospital — formerly owned by Dallas-based Steward Health Care — for $1.9 million after the hospital closed in January. Tenor reopened the hospital in March.
7. Tenor’s hospital operations strategy will emphasize revenue cycle efficiency, strategic service line expansion, and disciplined expense management across labor, professional services, purchased services, and supply chain operations.
