Sale of area hos­pi­tals to Read­ing Health Sys­tem is com­plete

The Community Connection - - FRONT PAGE - By Donna Rovins drovins@21st-cen­tu­ry­media.com @Mer­cBiz on Twit­ter

The sale of five area hos­pi­tals to the Read­ing Health Sys­tem has been com­pleted.

The ac­qui­si­tion was com­pleted on Fri­day af­ter­noon, Sept. 29, and was 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 CLINT MATTHEWS 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 Sept. 29, 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 drovins@21stcen­tu­ry­media.com

DIG­I­TAL FIRST ME­DIA FILE PHOTO

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.

DIG­I­TAL FIRST ME­DIA FILE PHOTO

Phoenixville Hospi­tal in Phoenixville is now part of the Read­ing Health Sys­tem, along with four other re­gional hos­pi­tals.

DIG­I­TAL FIRST ME­DIA FILE PHOTO

Brandy­wine Hospi­tal in Caln Town­ship is now part of the Read­ing Health Sys­tem, along with four other re­gional hos­pi­tals.

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