Former buyer of Pennsylvania hospitals asks judge to block closure

Turnaround firm Canyon Atlantic Partners asked a Pennsylvania Court of Common Pleas judge to stop the closure of two Tower Health hospitals, which the company previously planned to purchase, Daily Local News reported Jan. 27.

Canyon Atlantic Partners asked the judge to halt the closure of Coatesville, Pa.-based Brandywine Hospital, which is set to close Jan. 31, and reverse the closure of the West Grove, Pa.-based Jennersville Hospital, which closed Dec. 31.

West Reading, Pa.-based Tower Health entered a definitive agreement to sell the hospitals to Canyon Atlantic Partners in November but called off the deal in December, stating the company was unable to demonstrate it could effectively take over the hospitals.

The company accused Tower Health of not fulfilling the terms for pulling out of the sale and that the health system did not provide notice or discussion, according to Daily Local News.

Stacey Scrivani, the attorney representing Tower Health, claimed the health system did not break its contract, according to the report. She asked the judge to deny the firm's request and accused it of breaching the contract by not securing the needed funding to take over the hospitals.

"Any immediate harm … could have been avoided by filing the [injunction petition] more than a month ago," her answer to the motion read. "Instead [Canyon Atlantic Partners] sat on its hands while Jennersville Hospital closed and Brandywine Hospital took substantial steps toward closing. [It's] own delay is to blame for any alleged immediate harm."

A hearing for the injunction was scheduled for Jan. 27 but was postponed because of an illness, Daily Local News reported. A new date has not been announced.

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