BREAKING: The Luzerne County Council has just approved a vital resolution allowing the Tenor Health Foundation to secure $72 million in financing to purchase Wilkes-Barre General Hospital. This significant development was confirmed during a meeting on Tuesday night, setting the stage for a transformative change in healthcare for the region.
The nonprofit organization, based in California, will utilize $47 million in tax-exempt bonds and $25 million in taxable bonds to fund the acquisition. The financing will be facilitated through the county and the Northeastern Pennsylvania Hospital and Education Authority, which will not be liable for any debt should Tenor default. The deal is expected to close in December 2023.
Tenor Health’s acquisition includes not only Wilkes-Barre General Hospital, which has 369 beds, but also the surrounding physician practices and ambulatory surgery centers. However, the organization will not be purchasing Regional Hospital of Scranton and Moses Taylor Hospital, as Community Health Systems Inc. is essentially divesting these facilities due to financial difficulties.
This acquisition comes at a time of urgent need for improved healthcare in the region. U.S. Representative Rob Bresnahan Jr. stated, “This is another encouraging step toward bringing real stability back to healthcare in Luzerne and Lackawanna Counties.” He emphasized the importance of these hospitals as community cornerstones that must prioritize patient and staff needs.
Concerns have been raised regarding the potential loss of property tax revenue, as Tenor Health is a nonprofit organization. Luzerne County, the City of Wilkes-Barre, and the Wilkes-Barre Area School District could face a collective loss of $1.9 million annually if the Commonwealth Health properties transition to nonprofit ownership. Tenor has agreed to pay Luzerne County $850,000 in lieu of taxes each year from 2026 to 2029.
In a statement, Tenor Health CEO Radha Savitala expressed gratitude for the support from local officials and reiterated the foundation’s commitment to maintaining high-quality healthcare access. “Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on,” Savitala stated.
The urgency of this situation is underscored by the challenges Wilkes-Barre General Hospital currently faces. CEO Michael Clark highlighted critical infrastructure needs and staffing challenges during the council meeting, pointing out that the hospital has struggled with equipment replacements and retaining qualified personnel. “Pennsylvania is a difficult place to operate due to many things,” Clark noted.
The timeline for this transition is crucial. With the agreement in place, Tenor Health is now positioned to make necessary improvements and investments in the hospital, which will directly impact the healthcare services available to the community.
As the community awaits the completion of this acquisition, all eyes will be on how Tenor Health can stabilize and enhance healthcare services in Luzerne and Lackawanna Counties. The next steps will be closely monitored as local leaders and residents alike hope for a positive transformation in their healthcare landscape.
Stay tuned for further updates as this story develops.
