Penn Medicine backs out of Tower Health hospital purchase

Philadelphia-based Penn Medicine is terminating its letter of intent to purchase Coatesville, Pa.-based Brandywine Hospital from West Reading, Pa.-based Tower Health.

"After an intensive due diligence process, we have determined that we would be unable to build out the infrastructure for the project in the space available on the Brandywine campus," a spokesperson for Penn Medicine said in a statement shared with Becker's

Penn Medicine initially announced plans to acquire Brandywine, which closed in December 2021 to cut costs, last June after signing a memorandum of understanding with the Department of Veterans Affairs through expansions under the PACT Act.

"Our vision included the potential purchase of the former Brandywine Hospital campus from Tower Health, where we hoped to accommodate the VA's plans as well as explore ways to provide additional access to health care for other local residents," the spokesperson said. 

The PACT Act, signed into law last August, expands VA healthcare and benefits for veterans exposed to Agent Orange, burn pits and additional toxic substances.

Penn Medicine is working to find a different property in the Coatesville area to move forward with the project and plans to work with community stakeholders to continue its efforts, the spokesperson said. 

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