West Reading, Pa.-based Tower Health's $28 million sale of Philadelphia-based Chestnut Hill Hospital to a consortium led by Philadelphia-based Temple University Health System has been approved by an Orphans Court judge, The Philadelphia Inquirer reported Dec. 2.
Temple will own 60 percent of the hospital, and its partners Meadowbrook, Pa.-based Redeemer Health and the Philadelphia College of Osteopathic Medicine will split the rest. The consortium could pay an additional $4 million to Tower Health for transition services.
Under the terms of the agreement, the consortium will take over the 148-bed hospital on Jan. 1.
"We believe there is significant opportunity to improve the quality of care" at Chestnut Hill, Temple's CEO Mike Young told bond analysts on Nov. 17, which will lead to better community perception of "a hospital that's been underperforming for decades."