Community Health Systems sells three more hospitals

Community Health Systems announced this week that its subsidiaries have divested the 186-bed Regional Hospital of Scranton and 122-bed Moses Taylor Hospital in Scranton, Pa., the 369-bed Wilkes-Barre (Pa.) General Hospital, and “certain related businesses” to affiliates of 501(c)(3) nonprofit organization Tenor Health Foundation for $33 million cash plus a $15 million promissory note from the buyer.

“Additional cash consideration may be received in one or more future periods contingent upon collections of certain patient accounts receivable during the 90-day period following the closing effective date,” stated a press release.

Community Health Systems has been actively selling hospitals in the new year. Earlier this week, it announced that it sold Tennova Healthcare-Clarksville Hospital and its ER to Vanderbilt Health, and last month it sold Crestwood Medical Center to Huntsville Hospital Health System.

According to a report from Pittston, Pa., PBS and NPR affiliate WVIA, the deal comes after a potential deal between CHS and Woodbridge Healthcare fell through in November 2024. Fierce Healthcare reports that the sale price to Tenor is well below the $120 million sale price CHS had in place with WoodBridge Healthcare.

WVIA reports that Tenor Health Foundation publicly emerged as a buyer last August. Tenor says its mission is to identify, own, manage, and turn around financially challenged hospitals. Its first acquisition was Sharon (Pa.) Regional Medical Center, a privately owned hospital that closed in January 2025 and reopened under Tenor's ownership two months later.

Tenor CEO Radha Savitala told WVIA that there would be no interruption of services through the transition at the three hospitals it acquired this week. WVIA’s report has much more on the sale and its local impacts.