Steward moves to sell struggling Pennsylvania hospital

Alia Paavola - Print  | 

Dallas-based Steward Health Care has signed a letter of intent to sell Easton (Pa.) Hospital to a local healthcare system, a source familiar with the agreement told The Morning Call.

The document reviewed by the publication suggest that St. Luke's University Health Network is the likely buyer. Both Steward and St. Luke's declined to comment.

Last month, Bethlehem, Pa.-based St. Luke's University Health Network and Allentown, Pa.-based Lehigh Valley Health Network, submitted bids to buy Easton Hospital.

The takeover bids came after Steward said it would cut services to improve the system's finances.

Easton Hospital has struggled to compete with both St. Luke's and Lehigh Valley Health for the last five years, according to the report. 

On Feb. 12, Steward sent a warning letter to the Lehigh Valley Health to stop recruiting physicians from Easton Hospital, saying they are contractually banned from working at a competing system. This suggests that St. Luke's bid may have been approved over Lehigh Valley Health, according to the report. 

Read the full report here

More articles on healthcare industry transactions:
KKR, GK Investments in talks to acquire largest hospital operator in UAE
McKesson, Change Healthcare to end health IT partnership
Kentucky system to join Deaconess Health in July

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.