Community Health Systems to sell three Pennsylvania hospitals

On Tuesday, Franklin, Tenn.-based Community Health Systems, Inc. announced it had entered into an agreement to sell three Pennsylvania hospitals in Scranton and Wilkes-Barre to WoodBridge Healthcare, Inc.

The $120 million deal would sell 186-bed Regional Hospital of Scranton and 122-bed Moses Taylor Hospital in Scranton, 369-bed Wilkes-Barre General Hospital in Wilkes-Barre, as well as other related businesses to affiliates of WoodBridge, officials said, including Commonwealth’s ambulatory surgery centers, emergency departments, imaging centers, laboratories, outpatient rehabilitation operations, sleep care centers, walk-in clinics, wound care centers and physician network.

The $120 million was inclusive of a $10 million prepayment for services to be provided as part of an information technology transition services agreement. The deal is subject to adjustment for the assumption of any capital/finance leases and net working capital, officials said. The transaction is expected to close in the fourth quarter, subject to regulatory approvals and closing conditions.

U.S. Rep. Matt Cartwright (D-Scranton) said he is optimistic about the sale.

“I’m optimistic that these important healthcare assets will be saved and hopeful that this new owner will be more accountable to the patients, to the staff, and to the community it serves,” he said in a statement. “I’m particularly grateful for the tremendous work of State Representative Bridget Kosierowski, who took the lead on this issue and immersed herself in this effort to make sure local patients receive the quality care they deserve while keeping my office updated throughout ongoing discussions.”

The hospitals were among additional potential divestitures discussed on the company’s second quarter 2024 earnings call. Community Health Systems is one of the country’s largest healthcare companies with healthcare delivery systems in 40 markets across 15 states. The company’s subsidiaries own or lease 71 affiliated hospitals with more than 11,000 beds and operation more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.

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