URGENT UPDATE: Tenor Health Foundation is set to secure $47 million in tax-exempt financing for the acquisition of Wilkes-Barre General Hospital, following a resolution approved by the Luzerne County Council on November 10. This critical funding will enable Tenor to proceed with a significant healthcare investment in the region.
The California-based nonprofit plans to borrow up to $47 million in tax-exempt bonds and an additional $25 million in taxable bonds. This financing arrangement positions Tenor as a key player in revitalizing healthcare services in northeastern Pennsylvania.
The county and the Northeastern Pennsylvania Hospital and Education Authority will act as conduits for the tax-exempt financing, ensuring that taxpayers will not be liable if Tenor defaults on its debt. The anticipated closing date for this acquisition is set for December 2023.
Tenor Health is acquiring the Commonwealth Health network, which includes not only Wilkes-Barre General Hospital but also Regional Hospital of Scranton and Moses Taylor Hospital. However, officials noted that financing is not being sought for the latter two hospitals due to Community Health Systems Inc. effectively divesting from these unprofitable operations.
In an effort to mitigate potential losses in property tax revenue, Tenor has agreed to pay Luzerne County $850,000 annually from 2026 through 2029. Concerns were raised at the council meeting about the financial implications for local entities, with estimates suggesting a loss of up to $1.9 million annually if the nonprofit status of Tenor impacts property tax contributions.
U.S. Representative Rob Bresnahan Jr. praised the council’s decision, stating, “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 deserve a system prioritizing patients and staff.
Tenor Health CEO Radha Savitala echoed these sentiments, noting, “Tonight’s vote is an important step in our effort to ensure patients receive the dependable, community-centered care they count on.” She expressed gratitude to local leaders for their collaboration in maintaining quality healthcare access.
This acquisition comes after a previous attempt by WoodBridge Healthcare to purchase the Commonwealth Health hospitals failed last year when they could not secure necessary bond financing. The urgency of this transition is underscored by ongoing challenges faced by the hospitals, including aging infrastructure and difficulties in recruiting medical staff.
Wilkes-Barre General CEO Michael Clark detailed the hospital’s pressing needs, stating, “We have everything from equipment needs to infrastructure needs.” He highlighted the challenges posed by Community Health Systems, which has indicated it no longer wishes to operate hospitals in Pennsylvania.
As Tenor Health prepares to take over, it plans to hire “substantially all employees in good standing,” amounting to approximately 2,400 employees, ensuring job security during this transition. The community awaits further developments as Tenor Health takes decisive steps to enhance healthcare services in the region.
The next major milestone will be the financing closing in December, which will pave the way for Tenor Health to implement its strategic plans for revitalizing local healthcare.
This urgent development is expected to have lasting impacts on the community’s health services, making it essential for local residents to stay informed as this story unfolds.
