Tower Health's proposed sale of Chestnut Hill Hospital faces one final hurdle

West Reading, Pa.-based Tower Health's proposed sale of Chestnut Hill Hospital in Philadelphia to three local health care organizations faces one final hurdle: approval from the Philadelphia Orphans' Court, the Philadelphia Business Journal reported Nov. 22.

A top priority for Tower Health in deciding to accept the $28 million bid by the local group, including Temple University Health System, the Philadelphia College of Osteopathic Medicine and Redeemer Health, was that the consortium planned to maintain Chestnut Hill Hospital as a nonprofit acute care facility, the report said.

If the Philadelphia Orphans' Court approves the sale, it is expected to close on or around Dec. 31.

Five notes from the report:

1. The consortium has also agreed to pay an additional $4 million to Tower Health for transition services.

2. Chestnut Hill Hospital posted a net loss of $20.6 million in fiscal 2022, according to bond documents filed by Tower Health.

3. Last week, Tower Health eliminated 52 positions from its corporate staff to match what the heath system called its "smaller size and scope."

4. The positions at the manager, director, associate vice president, vice president and senior executive levels represented about 13 percent of Tower Health’s management staff.

5. About 40 of the job cuts took effect immediately, with the remainder landing over the next six to eight weeks.

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