Community Health Systems (CHS) has sold its Commonwealth Health system to nonprofit Tenor Health Foundation, the for-profit chain announced.
The sale, effective Feb. 1, comes just days after the parties received regulatory clearance from the state and in the wake of community and government efforts to keep the facilities open despite financial losses (see that story below).
The announcement also makes public the three-hospital system's price tag: $33 million of cash plus a $15 million promissory note from Tenor, with additional cash considerations possible depending on collections of certain patient accounts receivable during the following 90 days.
That's well below the $120 million sale price CHS had in place for a prior iteration of the sale to WoodBridge Healthcare. That arrangement fell apart in 2024.
Jan. 29
Pennsylvania health department clears CHS' 3-hospital sale to nonprofit
The Pennsylvania Department of Health has signed off on a deal to sell three Community Health Systems hospitals to affiliates of Tenor Health Foundation, according to statements from the nonprofit and a government official.
The sale, signed in October, involves the three hospitals and affiliate sites of CHS' Commonwealth Health system: the 186-bed Regional Hospital of Scranton, the 122-bed Moses Taylor Hospital and the 369-bed Wilkes-Barre General Hospital.
"We are humbled by support of everyone involved and look forward to providing care in Northeast Pennsylvania," Radha Savitala, CEO of Tenor, said in a statement given to press thanking local government and confirming receipt of the approval.
Financial terms of the deal have not been disclosed, though the transaction is largely viewed as a lifeline for facilities that at one point faced the threat of closure. After a prior deal between for-profit CHS and another buyer, WoodBridge, fell through, community organizations reportedly pooled millions of dollars to help support the hospitals while the company worked with state officials to find another buyer.
"After months of sustained negotiations and keeping all parties at the table, we’ve reached the finish line," Pennsylvania Congressman Rob Bresnahan Jr., a Republican, wrote in a social media post confirming the approval. "This outcome reflects the dedication and collaboration of local, state and community partners who came together to support patients, families and the healthcare workers who serve them every day."
A date has not yet been set for the transaction's close.
Corinne Cianfichi, chapter president of SEIU Healthcare PA, a union with members employed at the hospitals, said workers "are hopeful and relieved" following the deal's regulatory approval. She echoed the praise for community members and government officials who supported the hospitals and backed the deal, and said the union looks forward to Tenor's ownership.
“Tenor has agreed to honor our union contract so we can continue to have a strong voice to advocate for our patients and our coworkers," she said in a statement. "We expect Tenor to work hard and invest resources, and we will work hard to take care of our patients and make our hospital successful. We look forward to working with Tenor to preserve and expand a full range of services and good, family-sustaining jobs, so we can provide the quality healthcare our community deserves.”
Oct. 27, 2025
Community Health Systems signs deal to sell 3 Pennsylvania hospitals to turnaround nonprofit
Community Health Systems (CHS) announced Friday evening a new definitive agreement to sell three Pennsylvania hospitals to affiliates of Tenor Health Foundation, a recently formed nonprofit.
Early discussions on the deal and a signed letter of intent had been reported during the summer (see that story below) and confirmed at the time by company representatives. The deal is a second attempt for CHS to sell off its Commonwealth Health system after a prior purchase agreement with WoodBridge Healthcare was called off last year.
Involved in the transaction are the 186-bed Regional Hospital of Scranton, the 122-bed Moses Taylor Hospital and the 369-bed Wilkes-Barre General Hospital, as well as their affiliate sites.
Financial terms of the deal are not being disclosed. CHS said in its announcement that a close is contingent on Tenor finalizing its funding, as well as on customary regulatory approvals.
"Once funding is secured, the transaction is expected to close very soon thereafter within the fourth quarter this year," CHS wrote.
Tenor Health Foundation, the purchaser, is a nonprofit recently formed by former Prime Healthcare executives that aims to own, lease, manage and turn around operations at struggling small to medium-sized hospitals, according to its website. It does so through a “focus on efficiency of revenue cycle, enchaining service lines as appropriate and expense management in areas such as salaries and benefits, professional services, purchased services and supply chain.”
In the time since its prior, $120 million deal with WoodBridge fell through, CHS said it has been working alongside Pennsylvania Governor Josh Shapiro and other members of the state's General Assembly "to identify another operator to sustain the Scranton operations and care for the community. Exhaustive outreach was made to regional and national organizations."
CHS said the agreement is among the potential hospitals divestitures executives had teased during Friday morning's quarterly earnings call. The for-profit's executives said such deals, combined with CHS' anticipated positive free cash flow by the end of this year and other sources of unrestricted liquidity, would provide new leeway to increase investments in the company's growth, efficiency and quality of care.
CHS, which owns or leases 70 affiliated hospitals, had topped Wall Street's expectations for the third quarter with substantial same-store revenue gains that outpaced lingering volumes stumbles from the prior quarter. The company attributed its strong performance to strengthening payer mix and recently approved Medicaid state directed payment program applications.
Community Health Systems in talks to sell 3 Pennsylvania hospitals to turnaround nonprofit
Aug. 7, 2025
Community Health Systems has a tentative deal in place to sell a three-hospital Pennsylvania system to nonprofit Tenor Health Foundation, representatives of the companies have confirmed.
The planned handoff was reported yesterday by the Scranton Times-Tribune and other local outlets, citing an internal correspondence and confirmations from officials. The arrangement involves Scranton, Pennsylvania-area Commonwealth Health and its three hospitals—Regional Hospital of Scranton, Moses Taylor Hospital and Wilkes-Barre General Hospital—and their affiliated care sites.
Tomi Galin, executive vice president of corporate communications and marketing at CHS, told Fierce Healthcare that the organizations had signed a letter of intent last week.
“This is the first step in a process that we all hope will result in a completed transaction and preserve the healthcare services provided by Commonwealth Health,” she wrote in an email. “As the process moves forward, we'll share any future major updates.”
"We look forward to working with the communities served by these facilities," Tenor CEO Radha Savitala said in a statement confirming the news.
CHS had hoped to sell off the hospitals last year to WoodBridge Healthcare, another nonprofit. The pair had signed an asset purchase agreement in July 2024 valued as $120 million but, in late November, mutually agreed to scrap the deal.
At the time, CHS said the stumble was “due to WoodBridge’s inability to satisfy the funding requirements” and that it would “evaluate future options for Commonwealth Health in light of the termination of this transaction.”
Concerns swirled during the following months that without a new buyer, two of the hospitals, Regional and Moses, could be closed down. A coalition of local foundations and nonprofits has provided millions of dollars in temporary financial support to ensure operations at these facilities would continue, the Scranton Times-Tribune reported. A spokesperson for those organizations as well as local government leaders told the paper they were encouraged by the signed letter of intent.
Tenor Health Foundation, the purchaser, is a nonprofit recently formed by former Prime Healthcare executives. Earlier this year it received Pennsylvania’s blessing to take over operations at another hospital, Sharon Regional Medical Center, previously owned by the bankrupt Steward Health Care. That facility resumed core services in March and fully reopened by May.