Stonebridge Healthcare, a hospital turnaround firm, has offered West Reading, Pa.-based Tower Health $675 million to purchase Reading Hospital, Phoenixville Hospital and Pottstown Hospital, all in Pennsylvania, and their related assets, the Philadelphia Business Journal reported Nov. 29.
The proposed purchase price includes provisions involving working capital and other factors that could lower the offer, according to the report.
Under the proposal, which is set to expire Dec. 9, Stonebridge said it would commit to hiring all the hospitals' staff at pay levels "reasonably consistent" with rates paid by Tower Health, according to the Journal.
Stonebridge, working in a partnership with Allentown, Pa.-based Lehigh Valley Health Network, made two conditional offers last year to acquire all of Tower Health's assets for $600 million. Both offers were declined.
Lehigh Valley is not part of the revised offer, but Stonebridge CEO Joshua Nemzoff told the Journal the company is in talks with "two or three" health systems that could be a minority partner in the deal.
Stonebridge, formed in 2020 to purchase and turn around acute care hospitals that are in significant economic distress, does not own or operate any hospitals yet. The company is discussing several potential deals, but has not signed any agreements, according to the report.