US-based non-profit healthcare group WoodBridge Healthcare has agreed to purchase Commonwealth Health, a network of three hospitals in north-eastern Pennsylvania.
WoodBridge affiliates entered an agreement with certain subsidiaries of Community Health Systems (CHS) to acquire Commonwealth Health for around $120m.
The asset purchase agreement includes prepayment for IT transition services and is subject to adjustments based on finance/capital leases, as well as net working capital.
Commonwealth Health comprises the 369-bed Wilkes-Barre General Hospital and the Regional Hospital of Scranton and Moses Taylor Hospital in Scranton, which have 186 and 122 beds respectively.
These hospitals were among the potential divestitures discussed in CHS’ earnings call for the second quarter of 2024.
The acquisition also includes Commonwealth Health's ambulatory surgery centres, emergency departments, wound care centres, outpatient rehabilitation, sleep care centres, walk-in clinics, imaging centres, laboratories and physician network.
The deal is expected to close in the fourth quarter of this year subject to customary regulatory approvals and closing conditions.
Once it has closed, Commonwealth Health will return to its original non-profit status, with local board representation maintained.
WoodBridge Healthcare said it will continue to preserve the community's access to care by building on its current operations and services.
The non-profit organisation aims to address the region's health needs by enhancing community health, working with local groups to address care gaps, and using hospital resources to provide tailored care.
WoodBridge board of directors chairman Joshua Nemzoff said: “We are pleased to announce that these hospitals were a catalyst for establishing WoodBridge, which aims to enhance and preserve access to not-for-profit care in local communities.
“The Commonwealth Health system has a long and proud history of serving the Scranton and Wilkes-Barre region and we will strengthen and enhance that tradition for years to come.”
Earlier this year, Hamilton Health Care System formalised an agreement to acquire Tennova Healthcare-Cleveland and certain related businesses from CHS subsidiaries.
