Trinity Health Mid-Atlantic has abandoned its plan to buy Tower Health's Chestnut Hill Hospital in Philadelphia, according to the Philadelphia Inquirer.
Trinity Health Mid-Atlantic, which serves the Greater Philadelphia area and is a part of Trinity Health of Livonia, Mich., signed a preliminary agreement to buy Chestnut Hill Hospital in September 2021. The potential sale was announced as part of a financial stabilization plan outlined from West Reading, Pa.-based Tower Health.
Trinity Health and Tower Health said they mutually agreed to end negotiations.
"Trinity Health Mid-Atlantic determined that it could not identify enough synergies that would result in substantial benefits for patients and the community," Tower Health CEO P. Sue Perrotty wrote in a memo to employees, according to the Inquirer.
Tower Health also said it doesn't plan to close Chestnut Hill Hospital and will continue to explore a sale.
This is not the first proposed sale of a Tower Health hospital to fall through. In early December 2021, Tower Health announced it would close Jennersville Hospital in West Grove, Pa., and Brandywine Hospital in Coatesville, Pa., after the health system terminated a deal with Canyon Atlantic Partners of Austin that was announced in November 2021. Under that deal, Canyon Atlantic was set to assume ownership and operation of both hospitals Jan. 1.
Instead, Jennersville Hospital closed Dec. 31, 2021, and Brandywine Hospital is slated to close Jan. 31.
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