Radha A. Savitala, CEO of Tenor Health, announced the state’s sign-off Wednesday afternoon. It was unclear how soon the acquisition could take effect.
SCRANTON, Pa. — The state Department of Health approved Tenor Health Foundation’s pending acquisition of two hospitals in Lackawanna County and one in Luzerne County, the California-based foundation’s chief executive said Wednesday.
The state’s go-ahead is a major step toward the Tenor Health assuming control of Moses Taylor Hospital, Regional Hospital of Scranton, and Wilkes-Barre General Hospital from the financially struggling Commonwealth Health Systems.
Radha A. Savitala, CEO of Tenor Health, announced the state’s sign-off Wednesday afternoon. It was unclear how soon the acquisition could take effect.
“We are humbled by (the) support of everyone involved and look forward to providing care in Northeast Pennsylvania,” Savitala said in an email.
Scranton Mayor Paige Cognetti commented on the sign-off, saying in a statement:
“Protecting access to health care for Northeastern Pennsylvanians is critically important, which is why I am pleased by today’s decision by the Pennsylvania Department of Health (DOH) approving Tenor Health’s application.
This means that Moses Taylor, Regional and Wilkes-Barre General hospitals will remain open. In the face of devastating Medicaid cuts and reduced federal funding for healthcare across the Commonwealth, I’m proud that our community came together to advocate for an outcome that will keep our hospitals open for the patients who depend on them for lifesaving care every single day, and that hundreds of hospital staff will remain in the jobs they love.”
Congressman Rob Bresnahan also released a statement commenting on the efforts.
“From day one, our top priority has been protecting continuity of care in Northeastern Pennsylvania by keeping our hospitals open and serving patients. After months of sustained negotiations and keeping all parties at the table, we’ve reached the finish line. This outcome reflects the dedication and collaboration of local, state, and community partners who came together to support patients, families, and the healthcare workers who serve them every day.”
Tenor Health reached a definitive agreement with Commonwealth Health in October to purchase the hospitals, but the deal was pending DOH approval.
In November, Luzerne County Council authorized Northeastern Pennsylvania Hospital and Education Authority to issue $47,000,000 in tax-exempt revenue bonds and $25,000,000 in taxable revenue bonds to help Tenor raise funds to purchase Wilkes-Barre General. Regional and Moses Taylor, which had been losing money, did not have a purchase price.