Local hospitals to be sold.
Reading Hospital owner to purchase PMMC, Phoenixville, 3 others in region
Reading Health System, the owner of Reading Hospital, announced Tuesday it has signed an agreement to purchase Pottstown Memorial Medical Center, Phoenixville Hospital and three others in a major expansion of the Berks County health care system.
The agreement to buy the five facilities from Community Health Systems Inc. of Franklin, Tenn., includes the sale of the hospitals and their associated assets.
In addition to PMMC and Phoenixville Hospital, the three other hospitals being sold are Brandywine Hospital in Caln Township, Chestnut Hill Hospital in Philadelphia and Jennersville Regional Hospital in Penn Township in southern Chester County.
The transaction is expected to close this summer, subject to regulatory approvals and closing conditions. Until the deal is complete, current ownership remains in place. No purchase price was revealed.
The terms of the sale agreement include a commitment by Reading Health System to offer employment to all active employees in good standing when the transaction is completed. Privileges will continue for all physicians in good standing on the medical staff.
“Creating a regional network of hospitals and providers makes sense in the current environment and positions us well for the future. We are committed to providing our patients with the highest quality care and this will continue as we join with Reading Health System,” PMMC CEO Rich Newell said in a statement.
PMMC is a 232-bed, acute care hospital, with a medical staff that includes 260 physicians representing 40 medical specialties. The hospital has about 1,100 employees, according to Deb Bennis, PMMC marketing director.
“The opportunity to become part of the larger regional network of Reading Healthcare System is exciting news for our hospital,” Steve Tullman, CEO of Phoenixville Hospital, said in a statement. “Working together we will strengthen the clinical services available to patients in our community and region.”
Phoenixville Hospital is a 139-bed acute-care facility with clinical partnerships with Jefferson Health, Penn Medicine and Nemours duPont Pediatrics.
Jeff Hunt, CEO of Brandywine Hospital, states, “This alignment with Reading Health System will create an exciting opportunity for our hospital to be part of a local network of hospitals working together to provide quality care. We are all focused on service to our patients and offering the medical services needed in our communities.”
Brandywine Hospital is a 169-bed, private room acute-care medical facility that has provided a continuum of care for more than 100 years.
Matt Shelak, CEO of Jennersville Regional Hospital, adds, “Our hospital plays a crucial role in providing convenient and quality health care for our patients. Reading Health System will help us maintain our critical position as a provider and employer in the community.”
Jennersville Regional Hospital is a 63-bed, all-private room facility, which has served the healthcare needs of the community for more than 50 years.
The acquisition supports Reading Health’s strategic vision of remaining a strong, regional, integrated provider/payer system. The new system will serve a population of 2.5 million individuals, according to a press release.
The West Readingbased Reading Health System plans to change its name to Tower Health in the summer to reflect its new regional structure.
“Reading Health has a rich 150 year history of providing high-quality, cost-effective healthcare to the communities we serve. The proposed acquisition will ensure the continued development of acute care and related assets, provider network and capabilities to best serve our region in a cost-effective manner. Integrating our new health plan into the continuum of services offers this expanded region increased access to value based care and further controls costs for employers and individuals,” Clint Matthews, president and CEO at Reading Health System, said in the release. “Also, by expanding the scope of our clinical programming through this acquisition, the new system will maximize opportunities to leverage best practices of each organization and further coordinate our brand of high-quality care across the entire system.”
Community Health Systems acquired PMMC in 2003 for $80 million when PMMC transitioned from a community hospital, and acquired Phoenixville Hospital in 2004 for $100.8 million.
In September 2016, the corporation announced it would begin “exploring a variety of options for its future.” At the time — Community Health Systems owned, leased or operated 158 affiliated hospitals in 22 states with nearly 27,000 licensed beds. It has since sold several hospitals and now owns, leases or operates 146 affiliated hospitals in 21 states with nearly 24,000 licensed beds.