According to the Philadelphia Inquirer, Trinity Health Mid-Atlantic has canceled its plan to purchase Tower Health’s Chestnut Hill Hospital in Philadelphia. In September 2021, Trinity Health Mid-Atlantic, which serves the Greater Philadelphia area and is a division of Trinity Health of Livonia, Mich., reached a preliminary deal to purchase Chestnut Hill Hospital.
- Potential sale: Tower Health, situated in West Reading, Pennsylvania, disclosed the potential sale as part of a financial stability strategy. Trinity Health and Tower Health announced that they have reached an agreement to cease negotiations.
- Benefits: “Trinity Health Mid-Atlantic determined that it could not identify enough synergies that would result in substantial benefits for patients and the community,” Tower Health CEO P. Sue Perrotty wrote in a memo to employees, according to the Inquirer.
- Proposal: This is not the first proposed sale of a Tower Health hospital to fall through. In early December 2021, Tower Health announced it would close Jennersville Hospital in West Grove, Pa., and Brandywine Hospital in Coatesville, Pa., after the health system terminated a deal with Canyon Atlantic Partners of Austin that was announced in November 2021.
- Assumption: Under that deal, Canyon Atlantic was set to assume ownership and operation of both hospitals on Jan. 1. Instead, Jennersville Hospital closed on Dec. 31, 2021, and Brandywine Hospital is slated to close on Jan. 31. Tower Health also said it doesn’t plan to close Chestnut Hill Hospital and will continue to explore a sale.
- The failure: The failure to sell Chestnut Hill to Trinity is another bad outcome for Tower, which has been reeling from a financially disastrous expansion away from Tower’s Berks County base at Reading Hospital.
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