UPDATE: Tenor Health Foundation has just received the green light to secure up to $72 million in financing for the purchase of Wilkes-Barre General Hospital, following a crucial resolution passed by Luzerne County Council on November 14, 2023. This major development marks a pivotal step in revitalizing healthcare in the region, with the closing of the deal anticipated for December 2023.
The nonprofit organization based in California plans to borrow $47 million in tax-exempt bonds and an additional $25 million in taxable bonds. Luzerne County and the Northeastern Pennsylvania Hospital and Education Authority will facilitate this financing without any liability if Tenor defaults, ensuring minimal risk to local taxpayers.
This acquisition includes not just Wilkes-Barre General Hospital, which boasts 369 beds, but also Regional Hospital of Scranton and Moses Taylor Hospital. However, Tenor is not seeking financing for the latter two hospitals, as they are being divested due to unprofitability, according to statements made during the council meeting.
In a significant agreement, Tenor will pay Luzerne County $850,000 annually in lieu of taxes from 2026 to 2029. This arrangement aims to mitigate concerns from council members regarding potential losses in property tax revenue. If the hospital properties transition to nonprofit status, Luzerne County, the City of Wilkes-Barre, and local school districts could face a combined loss of $1.9 million per year.
U.S. Representative Rob Bresnahan Jr. hailed the county council’s decision, emphasizing its importance for the local healthcare landscape. “This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties,” he stated.
Tenor Health CEO Radha Savitala expressed gratitude for the council’s support, stating, “Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on.” She highlighted the organization’s commitment to workforce stability, pledging to hire “substantially all employees in good standing,” amounting to approximately 2,400 positions.
The pathway to this acquisition began in August 2023 when Tenor signed a letter of intent to acquire the Commonwealth Health hospitals, following the collapse of a previous sale to WoodBridge Healthcare due to financing issues. The previous year, Commonwealth Health contributed $3.5 million in property tax revenue across multiple local jurisdictions.
At the council meeting, Wilkes-Barre General CEO Michael Clark outlined the hospital’s challenges, including aging infrastructure and difficulty in recruiting medical staff. “We have everything from equipment needs to infrastructure needs,” he noted, emphasizing that the hospital remains profitable despite these hurdles.
As Tenor Health moves forward with this acquisition, all eyes will be on how this transition impacts healthcare delivery in Northeastern Pennsylvania. Community members are hopeful that this change will not only preserve local jobs but also enhance the quality of healthcare services that families rely on daily.
Stay tuned for further updates as this story develops.
