West Reading, Pa.-based Tower Health purchased Pottstown (Pa.) Hospital in 2017 from Franklin, Tenn.-based Community Health Systems but remains in dispute with the original owner over the alleged condition of the facility at the time of the sale, according to a CHS filing with the Securities and Exchange Commission.
While courts have ruled in CHS' favor that the hospital was sold in a compliant condition, the issue, as well as decisions on attorney fees, remains on appeal with the United States Court of Appeals for the Third Judicial District, according to the filing.
"We continue to vigorously defend this case," CHS said in the filing.
In February, Pottstown Hospital had its nonprofit status reversed following a Pennsylvania Commonwealth Court ruling.
Tower Health declined to comment on any ongoing litigation.