Tower Health to close 2 Pennsylvania hospitals after terminating deal

Tower Health will close two of its hospitals in Pennsylvania after calling off a proposed deal to sell them to a Texas-based turnaround firm, The Times-Herald reported Dec. 9. 

The West Reading, Pa.-based system plans to close Jennersville Hospital in West Grove on Dec. 31 and Brandywine Hospital in Coatesville on Jan. 31, 2022. 

The closures will result in more than 800 employees losing their jobs. The health system said it will work to find new positions for as many team members as possible.

The decision to close the hospitals comes after the health system terminated a deal with Canyon Atlantic Partners of Austin that was announced in November. Under that deal, Canyon Atlantic was set to assume ownership and operation of both hospitals on Jan. 1, 2022.

In a memo to health system staff, Tower Health CEO Sue Perrotty expressed disappointment and said the deal was called off because Canyon Atlantic Partners was unable to demonstrate that it can effectively take over ownership and operation of the two hospitals.

"Unfortunately, despite our understanding at the time the agreement was signed — and after multiple requests and extensions over the last three weeks — Canyon Atlantic Partners has ultimately not demonstrated the necessary regulatory and operational preparedness, nor validated its financial ability, to complete this transaction and operate these hospitals," Ms. Perrotty wrote, according to The Times-Herald.

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