UPDATE: Tenor Health Foundation has just been cleared to secure $72 million in financing to purchase Wilkes-Barre General Hospital, a significant move approved by the Luzerne County Council on Tuesday night. This resolution allows Tenor to access $47 million in tax-exempt bonds and $25 million in taxable bonds, marking a crucial step in the acquisition process.
The urgency of this acquisition cannot be overstated. The closing is targeted for December, and the hospital’s future stability hinges on this financing structure. As Tenor Health aims to strengthen healthcare access in Northeastern Pennsylvania, this development comes at a critical time for local residents who rely on these essential medical services.
In addition to the hospital, Tenor will be acquiring the entire Commonwealth Health network, which includes Regional Hospital of Scranton and Moses Taylor Hospital. However, Tenor is not seeking financing for these two facilities, as they are being divested by Community Health Systems, which is transitioning away from unprofitable operations.
Amid concerns over potential property tax losses for local governments, Tenor has agreed to pay $850,000 annually to Luzerne County from 2026 through 2029. This agreement aims to mitigate the projected loss of approximately $1.9 million in combined revenue for Luzerne County, the City of Wilkes-Barre, and the Wilkes-Barre Area School District if the Commonwealth Health properties fall into nonprofit status.
U.S. Rep. Rob Bresnahan Jr. praised the council’s decision, stating, “This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties.” He emphasized the importance of maintaining quality healthcare services that prioritize patients and staff.
Radha Savitala, CEO of Tenor Health, echoed these sentiments, noting that the vote is a pivotal moment for ensuring community-centered care remains accessible for patients. She expressed gratitude for the collaboration with local leaders and stakeholders, highlighting the importance of their ongoing support.
The acquisition follows a previous failed sale attempt by WoodBridge Healthcare, which could not secure necessary financing last year. This situation has placed additional pressure on local healthcare facilities, which are grappling with aging infrastructure and recruitment challenges.
Wilkes-Barre General’s CEO, Michael Clark, outlined the hospital’s pressing needs, stating, “We have everything from equipment needs to infrastructure needs.” He emphasized that while the hospital remains profitable, the burden of operating under Community Health Systems has limited their ability to invest in necessary improvements.
As Tenor Health prepares for the acquisition, they plan to hire “substantially all employees in good standing,” amounting to approximately 2,400 employees. This commitment not only addresses staffing stability but also reflects Tenor’s intentions to revitalize healthcare services across the region.
The implications of this acquisition extend far beyond financial figures; it represents a lifeline for the community dependent on reliable healthcare. As the situation unfolds, residents and stakeholders will closely monitor the transition and its impact on local healthcare delivery.
Stay tuned for further updates on this evolving story as Tenor Health moves forward with its plans to enhance healthcare in Northeastern Pennsylvania.
