Franklin, Tenn.-based Community Health Systems has signed a definitive agreement to sell its three Pennsylvania hospitals to affiliates of WoodBridge Healthcare, a nonprofit organization led by healthcare veteran Joshua Nemzoff.
The hospitals include:
- Regional Hospital of Scranton (186 beds)
- Moses Taylor Hospital in Scranton (122 beds)
- Wilkes-Barre General Hospital (369 beds)
The proposed $120 million deal includes a $10 million prepayment for services to be provided subject to an IT transition services agreement and adjustment for the assumption of any capital/finance leases and net working capital.
CHS expects the deal — which would cement its exit from Pennsylvania — to close in the fourth quarter. The transaction is subject to regulatory approvals and closing conditions.
The 71-hospital, for-profit system reaffirmed its plan to take in $1 billion from hospital sales this year during its second-quarter earnings call. CHS' plan to sell two North Carolina hospitals to Novant Health for $320 million collapsed last month after a lengthy battle with the Federal Trade Commission, but it expects to complete the $160 million sale Tennova Healthcare-Cleveland (Tenn.) to Dalton, Ga.-based Hamilton Health Care System this quarter.
CHS reported a $13 million net loss in the second quarter, compared to a $38 million net loss in the second quarter of 2023.