UPDATE: Tenor Health Foundation has officially secured a pathway for $72 million in financing to acquire Wilkes-Barre General Hospital, following a decisive resolution from the Luzerne County Council on Tuesday night. This urgent development allows Tenor to initiate a borrowing plan that includes $47 million in tax-exempt bonds and $25 million in taxable bonds.
The approval means that Tenor Health, a California-based nonprofit, can move forward with the purchase, aiming to close the deal by December 2023. This acquisition is critical as it directly impacts healthcare stability in Luzerne and Lackawanna Counties, with U.S. Rep. Rob Bresnahan Jr. expressing that it represents a significant step towards strengthening care in the region.
Tenor is acquiring not just Wilkes-Barre General Hospital, which boasts 369 beds, but also the Commonwealth Health network, which includes Regional Hospital of Scranton and Moses Taylor Hospital. However, Tenor is opting not to finance the latter two hospitals, as Community Health Systems is essentially divesting from these operations, providing them at no cost.
In an effort to mitigate the potential loss of property tax revenue, Tenor has committed to paying Luzerne County $850,000 annually from 2026 through 2029. Concerns were raised during the council meeting about the financial impact, with estimates indicating that Luzerne County, the City of Wilkes-Barre, and the Wilkes-Barre Area School District could face a total revenue loss of $1.9 million annually if these hospitals transition to nonprofit ownership.
Tenor Health’s CEO, Radha Savitala, stated, “Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on.” The organization also plans to hire nearly all of the existing workforce of approximately 2,400 employees in good standing, which is crucial for maintaining continuity in patient care.
The agreement with Community Health follows a previous failed acquisition by WoodBridge Healthcare last year, emphasizing the ongoing challenges in securing stable healthcare operations in Pennsylvania. Wilkes-Barre General’s Chief Executive Officer, Michael Clark, detailed the urgent needs of the hospital, highlighting outdated infrastructure and equipment issues that require immediate attention.
As this situation unfolds, all eyes will be on Tenor Health as it navigates this significant transition, and stakeholders will be closely monitoring how these changes will affect healthcare access in the region. U.S. Rep. Bresnahan reaffirmed his commitment to ensuring that the transition strengthens local healthcare services and protects jobs, stating, “The people who work and seek care there deserve a system that puts the patients and staff first.”
The coming weeks will be pivotal as Tenor Health prepares for the acquisition and begins to implement its plans for revitalizing healthcare services in the area.
