Community Health plans to acquire 3-hospital system
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.