SCRANTON — Tenor Health Foundation signed an agreement to acquire Commonwealth Health’s hospitals in Scranton and Wilkes-Barre, as well as associated clinics and outpatient centers.
The acquisition includes Regional Hospital of Scranton, Moses Taylor Hospital and Wilkes-Barre General Hospital.
The transaction is subject to regulatory review and contingent on the nonprofit Tenor finalizing its funding, according to a statement from Commonwealth Health. Once funding is secured, the transaction is expected to be completed by the end of the year.
“We are delighted to announce the execution of the definitive agreement to bring the three Commonwealth Health hospitals into the Tenor Health Foundation family,” Radha A. Savitala, Tenor’s chief executive officer, said in a statement. “This acquisition exemplifies our organization’s commitment to preserve valuable healthcare resources — specifically in the most vulnerable communities. We are grateful to community leaders for engaging with us as well as the medical staff and hospital staff who continue to provide the much-needed services for these hospitals. We look forward to continuing to engage with all key stakeholders to ensure a seamless acquisition and transition.”
The announcement came late Friday after two elected officials indicated the agreement was at hand, with one official saying the agreement was signed and another saying it was “very, very close.”
Earlier in the day, U.S. Rep. Rob Bresnahan, R-8, Dallas Twp., said the deal could be finalized Friday, followed by a 30-day process to complete the sale of the three hospitals.
Scranton Mayor Paige Gebhardt Cognetti said after that she heard Tenor and CHS had signed a purchase agreement for the three hospitals. Cognetti is seeking the Democratic nomination to challenge Bresnahan for the 8th Congressional District seat in next year’s midterm elections.
In a statement Friday after the agreement was announced, the congressman said he was “encouraged by this positive step toward ensuring the continuity of care for our community.”
“These hospitals are essential to Scranton and the broader region, not only as providers of critical health services, but as major employers and anchors of our local economy,” he said.
Cognetti said the goal as always been to keep the doors of Regional and Moses Taylor Hospitals open, and to keep staff employed.
“After months of conversations with Tenor, and with Gov. Shapiro’s administration, state representatives, and community foundation leaders, I am cautiously optimistic that this sale means we will continue to have quality healthcare right here in Scranton,” Cognetti said. “We will do what we can to support Tenor as they seek the licenses and the financing they need to maintain and improve these hospitals.”
Tenor signed a letter of intent to acquire the hospitals in August after their sale to another nonprofit fell through last year. WoodBridge Healthcare had announced plans to purchase the hospitals in July 2024, but the deal fell apart in November when WoodBridge failed to secure bond financing to complete the acquisition.
The potential sale to WoodBridge, and its collapse, prompted fears that the financially challenged Scranton hospitals could close absent acquisition by another buyer, creating a void in the region’s health care landscape that other providers would struggle to fill.
Those fears motivated a multifront effort to save Regional and Moses Taylor, with officials at all levels of government working to facilitate a new sale, and a collection of foundations and nonprofits providing millions of dollars in temporary stopgap support to keep services running and staff paid at the Scranton facilities in the intervening time.
Grateful for support
Bresnahan spoke during a roundtable with Maternal and Family Health Services employees and board members at the organization’s Family Health Services Circle of Care center in South Scranton. Bresnahan was at the nonprofit’s facility to discuss funding for the Special Supplemental Nutrition Program for Women, Infants and Children, or WIC.
He asked Maternal and Family Health Services officials about their relationship with local hospitals during the roundtable. MFHS President and CEO Maria Montoro Edwards responded the organization was “very worried” about Moses Taylor, where she said most babies in the area are born.
“We are very worried about (the hospitals) closing because it would be a very difficult time for patients to get somewhere else,” she said.
Edwards said many clients are choosing to deliver outside of the system where they receive prenatal care. Thirteen of their clients have delivered outside of the Commonwealth Health system.
She said she is grateful for the foundations that have been financially supporting the hospitals. The foundations and nonprofits that have provided millions in temporary financial support since the spring to help ensure operations continue at Regional and Moses Taylor include the Scranton Area Community Foundation, the AllOne Foundation, the Luzerne Foundation, the Moses Taylor Foundation and the NEPA Health Care Foundation, as well as the Wright Center, Allied Services and the Greater Scranton Chamber of Commerce.
Concerns about WIC
During his visit, Bresnahan emphasized his support for WIC, which provides nutrition assistance to women who are pregnant and women and children under the age of 5. Officials gave the congressman a tour of the facility. He said he is concerned about federal funding for the program collapsing amid the government shutdown, which is in its fourth week.
The program, which helps more than 6 million low-income mothers, young children and expectant parents purchase nutritious staples like fruits and vegetables, low-fat milk and infant formula, was at risk of running out of money this month because of the government shutdown, which occurred right before it was slated to receive its annual appropriation.
The National WIC Association is calling for an additional $300 million in funding for the program, warning that millions of families could lose access to WIC benefits as early as Nov. 1.
Edwards said the organization is concerned about the federal government continuing to fund the program.
“We are very concerned because that’s about half of our budget and it is the most vulnerable of the people we serve,” she said.
Edwards was encouraged by Bresnahan’s visit Friday.
“I feel like he does believe this is a very pivotal issue and that it should be bipartisan and that he’s really willing to take this conversation to Washington and work toward getting a solution,” she said.
Staff Writer Jeff Horvath contributed to this story.
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