The Pennsylvania Department of Health on Jan. 28 approved Franklin, Tenn.-based Community Health Systems’ plan to sell its three Pennsylvania hospitals to the Tenor Health Foundation.
The approval comes after CHS, a for-profit system, signed a definitive agreement in October to sell Commonwealth Health to Tenor, a newly formed nonprofit organization.
Under the deal, Tenor will acquire Regional Hospital of Scranton (186 beds), Moses Taylor Hospital in Scranton (122 beds) and Wilkes-Barre General Hospital (369 beds).
The sale would see CHS exit the Pennsylvania market. CHS previously attempted to sell the hospitals to WoodBridge Healthcare for $120 million in 2024, but the deal collapsed because WoodBridge was unable to satisfy the funding requirements.
CHS and Tenor will now work to finalize the transaction “as quickly and smoothly as possible,” a CHS spokesperson told Becker’s in a statement. The terms of this deal were not disclosed.
Tenor was founded by CEO Radha Savitala, a healthcare attorney who led transactions for Orange, Calif.-based Prime Healthcare for more than 10 years and worked with senior executives on growth strategies. Tenor acquired Sharon (Pa.) Regional Hospital — formerly owned by Dallas-based Steward Health Care — in January 2025 and reopened the hospital in May.
“We are humbled by the support of everyone involved and look forward to providing care in Northeast Pennsylvania,” Ms. Savitala told Becker’s in a statement.
“Preserving the healthcare services offered by Commonwealth Health is monumentally important to the community, and we are grateful to everyone who has helped make this transaction possible,” the CHS spokesperson said.
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