Com­mu­nity Health plans to ac­quire 3-hos­pi­tal sys­tem

Modern Healthcare - - Late News -

Com­mu­nity Health Sys­tems, Franklin, Tenn., has agreed to ac­quire a three­hos­pi­tal sys­tem in north­east Penn­syl­va­nia from Catholic Health Part­ners, Cincin­nati, ac­cord­ing to a news re­lease. CHP’s lo­cal sys­tem, known as Mercy Health Part­ners, in­cludes two gen­eral hos­pi­tals, 224-bed Mercy Hos­pi­tal of Scran­ton (Pa.) and 58-bed Mercy Tyler Hos­pi­tal, Tunkhan­nock; and a long-term acute-care hos­pi­tal, 68-bed Mercy Spe­cial Care Hos­pi­tal, Nan­ti­coke. When CHP an­nounced its in­ter­est in sell­ing the sys­tem in Oc­to­ber, ex­ec­u­tives said failed at­tempts to con­sol­i­date the mar­ket left three strong play­ers in Scran­ton— in­clud­ing 248-bed Com­mu­nity Med­i­cal Cen­ter Health­care Sys­tem and 213-bed Moses Tay­lor Hos­pi­tal—with too many beds and du­pli­cated ser­vices. CHP would pre­fer to de­ploy its cap­i­tal in more promis­ing mar­kets, ex­ec­u­tives said. Com­mu­nity owns and op­er­ates 10 hos­pi­tals in Penn­syl­va­nia, in­clud­ing 368-bed Wy­oming Val­ley Health Care Sys­tem in Wilkes-Barre, which is less than 20 miles away. Com­mu­nity has agreed to in­vest $68 mil­lion in the Mercy sys­tem within five years of com­plet­ing the deal and to do­nate $2 mil­lion to a health­care foun­da­tion that will be cre­ated, ac­cord­ing to a news re­lease is­sued by Mercy Health Part­ners. The deal re­quires fed­eral and state reg­u­la­tory ap­provals, in­clud­ing by the Penn­syl­va­nia at­tor­ney gen­eral and the Ro­man Catholic Church.

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