Despite concerns from financial analysts and physicians, Tower Health executives are standing behind their plan to buy St. Christopher's Hospital for Children in Philadelphia out of bankruptcy, according to The Philadelphia Inquirer.
A bankruptcy judge recently approved the $50 million sale of St. Christopher's to West Reading, Pa.-based Tower Health and Drexel University in Philadelphia, prompting concern from the St. Christopher's physicians about the hospital's status as a trauma center and concern from analysts about the effects of the deal.
Analysts expressed concern about Tower Health's $167.9 million deficit and St. Christopher's distance from Tower Health's other hospitals.
Tower Health executives said its closest hospital is just 9 miles away from St. Christopher's and the deal will better position the system for the future.
The main drivers of the deal are the system's need for a pediatrics partner for the thousands of children who come to its emergency departments and the need for a medical training facility, Tower Health executives said.
Tower Health, which recently formed an academic partnership with Drexel University, now has medical residents and students from Drexel.
Daniel Ahern, Tower's executive vice president for strategy and business development, told analysts that buying St. Christopher's was mandatory from an educational standpoint, according to The Inquirer.
More articles on healthcare industry transactions:
Quorum Health divests California hospital
HCA to add 10th hospital in Georgia
Cleveland Clinic looks to expand hospital portfolio