Texas Transformation Corporation acquires two Tower Health hospitals

A transformational company in Texas will take over two troubled Tower Health hospitals from January 1, one of which was originally scheduled to close that day.

Towers announced on Monday that Canyon Atlantic Partners, LLC will take over the ownership and operation of the Brandywine and Jennersville hospitals in Towers in West Reading, Pennsylvania. The terms of the final agreement were not disclosed.After Tower’s board of directors signed the closure of the facility in September, the transaction saved Jennersville Hospital from closure Broader restructuring plan.

The agreement stipulates that Canyon Atlantic Partners, headquartered in the Austin area, will provide employment opportunities for clinical and non-clinical staff in all hospitals, effective from the date of transfer. The transformation company will also assume ownership of all inpatient and outpatient services related to the hospital.

Tower chairman Tom Work said in a statement: “We have done a lot of work to find solutions for Jennersville and Brandywine hospitals, and we are very pleased to identify a solution that will keep the two hospitals open.” “Ownership of The transfer will ensure continued and convenient access to care for the Jannersville and Brandy communities.”

Tower, a non-profit system, declined to comment after the press release. Canyon Atlantic did not respond to a request for comment.

The tower has lasted Severe economic loss In recent years, including fiscal year 2020 revenue of 1.9 billion U.S. dollars, operating loss of 439 million U.S. dollars, the loss rate is close to 23%. This revenue in fiscal 2021 was US$2.2 billion, and the loss expanded to US$614 million, with a loss rate of 28%.

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Executives said that COVID-19 caused losses to the system, but Tower had been losing money before the pandemic. The losses were most concentrated in the towers of the five acute care hospitals purchased from the for-profit community health system in 2017. These hospitals lost a total of $235 million in fiscal year 2020.

As part of the reorganization Announced in September, Tower said it plans to sell Chestnut Hill Hospital and more than a dozen emergency care centers to Trinity Health Mid-Atlantic.

Canyon Atlantic CEO David Kreye said in a statement that his company is honored to be selected and will give priority to working closely with the hospital community and medical staff.

“We look forward to transforming and developing our rich experience in acute care hospitals, further enhancing the hard work of the outstanding medical staff at Brandywine and Jennersville Hospitals, and ultimately having an impact on the larger communities they serve,” he said.

According to the state’s data, Canyon Atlantic has been registered as a limited liability company in Austin, Texas since October 2017. Comptroller of Public Accounts websiteAn independent company called Canyon Atlantic Partners was registered in Lakeway, a city northwest of Austin in August 2021. Kreye is the registered agent of these two companies.

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