BREAKING: Tenor Health Foundation has received the green light to proceed with a substantial borrowing plan for the acquisition of Wilkes-Barre General Hospital, following a pivotal resolution passed by the Luzerne County Council on Tuesday night. This urgent development allows Tenor to secure up to $47 million in tax-exempt bonds and $25 million in taxable bonds, marking a significant step towards stabilizing healthcare in the region.
The approval comes as Tenor Health, a California-based nonprofit, aims to finalize the purchase of Wilkes-Barre General Hospital, among other facilities, from Community Health Systems Inc. The deal is expected to close in December 2023. This acquisition is crucial, as it will impact the healthcare landscape not just in Wilkes-Barre but across Northeastern Pennsylvania, with local officials emphasizing the urgent need for reliable healthcare services.
As part of the agreement, Tenor will pay Luzerne County $850,000 annually in lieu of taxes from 2026 through 2029. However, concerns were raised during the council meeting regarding the potential loss of approximately $1.9 million in combined property tax revenue for Luzerne County, the City of Wilkes-Barre, and the Wilkes-Barre Area School District, should the nonprofit take ownership of the Commonwealth Health properties.
Tenor Health’s acquisition includes not only the 369-bed Wilkes-Barre General Hospital but also the 186-bed Regional Hospital of Scranton and the 122-bed Moses Taylor Hospital, along with all associated physician practices and ambulatory surgery centers. Notably, Tenor plans to retain “substantially all employees in good standing,” which amounts to around 2,400 employees across these facilities.
U.S. Rep. Rob Bresnahan Jr. expressed optimism following the council’s resolution, stating, “This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties.” He underscored the importance of ensuring that local hospitals continue to prioritize patient and staff needs.
Radha Savitala, CEO of Tenor Health, reiterated the organization’s commitment to community-centered care, stating, “Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on.” She acknowledged the collaborative efforts of local leaders in securing a sustainable future for healthcare in the area.
Tenor’s move to acquire these hospitals follows a failed attempt by WoodBridge Healthcare to purchase the Commonwealth Health network last year, highlighting the ongoing challenges in securing adequate healthcare financing in Pennsylvania. Wilkes-Barre General CEO Michael Clark pointed out the hospital’s pressing infrastructure needs and recruitment challenges under the previous ownership, emphasizing the importance of Tenor’s support to enhance operational capacity.
As this situation develops, stakeholders will be closely monitoring the transition process. The community is hopeful that Tenor Health’s investment will lead to improved healthcare services and job security for local residents. The urgency of these developments cannot be overstated, as the future of healthcare in the region hangs in the balance.
