West Reading, Pa.-based Tower Health has secured a new owner for two of its Pennsylvania hospitals, according to The Philadelphia Inquirer.
Tower Health entered a definitive agreement with Canyon Atlantic Partners, which will assume ownership and operation of Brandywine Hospital in Coatesville and Jennersville Hospital in West Grove. Tower Health said the deal, which takes effect Jan. 1, will keep both facilities open as acute care hospitals.
Jennersville Hospital was slated to close Jan. 1, and Brandywine was also on the chopping block due to financial losses, according to the Inquirer. Tower Health has been working on a financial turnaround plan for more than a year.
"There was extensive work done to find a solution for Jennersville and Brandywine Hospitals, and we are pleased to have identified one that keeps both hospitals open," said C. Tom Work, chair of Tower Health's board of directors, according to the Inquirer. "This transfer of ownership will ensure continued, convenient access to care for the Jennersville and Brandywine communities. It will also further advance Tower Health's financial and operational turnaround, positioning us to deliver on our mission well into the future."
Tower Health said all clinical and nonclinical staff in good standing at the hospitals will be offered employment by Canyon Atlantic Partners, a hospital management firm based in Austin. The firm will also assume ownership of all inpatient and outpatient services, according to the Reading Eagle.
Combined, Brandywine Hospital and Jennersville Hospital posted an operating loss of $42 million on revenue of $124 million in the fiscal year ended June 30.
Tower Health said it listened to the community, which expressed concerns about the potential for the two Chester County hospitals to close.
"We listened to the community and redoubled our efforts to keep Jennersville and Brandywine hospitals open," P. Sue Perrotty, president and CEO of Tower Health, told the Reading Eagle. "We are deeply grateful for the commitment of our staff, who showed steadfast dedication to our patients throughout this process. We have a lot of hard work ahead but believe this transaction represents the best opportunity for the two hospitals."