After the transaction failed, Tower Health closed two hospitals
Tower Health said on Thursday that it will close two hospitals in southeastern Pennsylvania after a failed transaction with an Austin-based transformation company.
The hospital system in West Reading, Pennsylvania will close the Jennersville Hospital in West Grove at 11:59 PM on December 31 and the Brandywine Hospital in Coatesville at 11:50 PM on January 31.
In late November, Tower Health had stated that it had Signed an agreement with Canyon Atlantic partners Take over two emergency hospitals on January 1. However, Tower Health stated on Thursday that “The Canyon Atlantic partner ultimately failed to demonstrate the necessary regulatory and operational readiness, nor did it verify its financial ability to complete the transaction and operate these hospitals.”
Canyon Atlantic Partners could not be reached for comment.
Josh MaxwellThe Mayor of Chester County, where the two hospitals are located, said via Twitter that the closure of the two hospitals was a “management tragedy.”
“They are not ready to operate the hospital effectively or find a buyer,” Maxwell said in an interview. “Life will be in danger because these people are at a loss.”
Maxwell said that when Tower Health acquired these hospitals in 2017, the system invested in buildings that could not be recovered.The system has faced financial difficulties since then and will sell itself before this summer Formed a strategic alliance with nearby Penn MedicineIn late September, Tower Health announced for the first time that it would close Jennersville Hospital on January 1. Philadelphia Business Journal Report, But later overturned this decision when signing a deal with Canyon Atlantic Partners.
The system stated in a press release: “For 16 months, Tower Health has sought all viable options to ensure the future of Brandywine and Jennersville Hospitals, including extensive exploration of potential new owners.” The system stated that “there is no viable option. “Continue to operate these two sites.
In an email statement, Tower Health stated that it will work to transition many of the 534 employees of Jennersville Hospital and the 253 employees of Brandywine Hospital to other positions in the system. Tower Health also stated that Penn Medicine will give priority to affected employees who apply for vacant positions within its footprint.
Maxwell said he is working with other healthcare providers in the area to compile a list of vacancies for affected employees and is studying how to provide Chester County residents with transportation to other locations for emergency and emergency care .