Pennsylvania's healthcare amid financial struggles, closures: What to know

Hospitals and health systems in Pennsylvania have faced financial struggles that have become evident amid recent layoffs, closures and sales. 

A 2023 report found that nearly 30% of rural hospitals in Pennsylvania were at risk of closing, former Gov. Tom Corbett wrote in an op-ed published Aug. 2 in Pittsburgh Post-Gazette. Now, six counties in the state are "maternal care deserts" and 60% of rural hospitals do not have labor and delivery services, he said.

Mr. Corbett wrote about a situation that he said sums up the healthcare problem in Pennsylvania: Renovo, Pa.-based Bucktail Medical Center's creation of a GoFundMe page last year to stay afloat throughout financial trouble. Hospital CEO Tim Reeves resigned in December.

Other recent developments have further illustrated the state's struggles related to healthcare.

Beaver, Pa.-based Heritage Valley Health System's organizational downsizing will result in multiple layoffs and facility closures. The cuts were made to help the two-hospital system meet its fiscal 2025 budget, according to Beaver County Radio

The system is continuing to evaluate a potential partner, the news outlet reported July 31. The closures include Heritage Valley Pediatrics in Calcutta, Pa., and BusinessCare in Center Township, Pa.

Additionally, Franklin, Tenn.-based Community Health System will sell its three Pennsylvania hospitals to affiliates of WoodBridge Healthcare.

The hospitals include Regional Hospital of Scranton, Moses Taylor Hospital in Scranton and Wilkes-Barre General Hospital. The proposed $120 million deal is expected to close in the fourth quarter, CHS said.

CHS reported a $13 million net loss in the second quarter and a $38 million net loss in the same quarter last year.

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