UNDER NEW OWNERSHIP
Sale of 5 area hospitals to Reading Health System is complete
of five area The sale hospitals to the Reading Health System has been completed.
The acquisition was completed on Friday afternoon and will be effective Monday, Oct. 1. No details about the terms of the sale were disclosed.
Hospitals included in the deal are the 232-bed Pottstown Memorial Medical Center in Pottstown, the 151-bed Phoenixville Hospital in Phoenixville, the 169-bed Brandywine Hospital in Caln Township, the 148-bed Chestnut Hill Hospital in Philadelphia and the 63-bed Jennersville Hospital in Penn Township in southern Chester County.
With the acquisition, Reading Health System becomes Tower Health, and all of the hospitals become part of the Tower Health System.
Under the new organization, two hospitals will be renamed: PMMC will be renamed Pottstown Hospital, while Jennersville Regional Hospital will be renamed Jennersville Hospital.
“We are coming together to create an even more dynamic, expansive and nationally recognized health system,” Clint Matthews, president and CEO of Tower Health, said in a press release. “Our new name, Tower Health, reflects our collective strength, innovative spirit and bold commitment to taking healthcare to new heights.”
The deal is a major expansion for the health system — taking it beyond the borders of Berks County. In addition to Reading Hospital in West Reading and the five newly acquired properties, Tower Health also includes: Reading Hospital’s Reading Hospital Rehabilitation at Wyomissing, Reading Hospital School of Health Sciences and Reading HealthPlex, an advanced surgical center; Tower Health Medical Group, a comprehensive network of primary and specialty providers; Tower Health Partners, a clinically integrated network; and Tower Health/UPMC Health Plan, according to a release.
On Monday, simultaneous events are planned at each of the six hospitals within the new Tower Health. The Launch Celebration events begin at noon, to recognize the formation of Tower Health. Each launch celebration will include remarks from either the current CEO of each hospital or a hospital executive.
The new health care system is now comprised of more than 11,000 employees, offering a regional, integrated healthcare provider/payer system to an estimated 2.5 million people.
According to the company, Tower Health’s hospitals and other facilities provide a full range of medical care.
“This is a tremendous opportunity to collectively deliver on our Tower Health promise of advancing health and transforming lives,” Matthews added.
While there was no new information provided by the company on Friday, the terms of the May agreement of sale included a commitment by Reading Health System to offer employment to all active employees in good standing when the transaction was completed, with privileges continuing for all physicians in good standing on the medical staff.
The five hospitals included in the transaction are part of the 30 planned hospital divestitures discussed by Community Health Systems Inc. on the company’s second quarter 2017 earnings call.
The agreement of sale between Reading Health System and the Franklin, Tenn.-based Community Health Systems Inc. was announced in May, eight months after Community Health systems Inc. announced it would begin “exploring a variety of options for its future.” Community Health then began announcing sales agreements for some of its properties.
At one time — Community Health Systems owned, leased or operated 158 affiliated hospitals in 22 states with nearly 27,000 licensed beds. According to a press release issued by Community Health Systems Inc. on Friday, the company, through its subsidiaries, owns, leases or operates 130 affiliated hospitals in 20 states with approximately 20,000 beds. Email business story ideas to business writer firstname.lastname@example.org
Pottstown Memorial Medical Center in Pottstown is now part of the Reading Health System, along with four other regional hospitals. The transaction, which had been announced in May, was finalized on Friday. The new health system will be called Tower Health. The other hospitals included in the purchase are: Phoenixville Hospital in Phoenixville, Brandywine Hospital in Caln Township, Chestnut Hill Hospital in Philadelphia and Jennersville Hospital in Penn Township in southern Chester County.
Phoenixville Hospital in Phoenixville is now part of the Reading Health System, along with four other regional hospitals. The transaction, which had been announced in May, was finalized on Friday. The new health system will be called Tower Health. The other hospitals included in the purchase are: Pottstown Memorial Medical Center in Pottstown, Brandywine Hospital in Caln Township, Chestnut Hill Hospital in Philadelphia and Jennersville Hospital in Penn Township in southern Chester County.