Community Health Systems, Brentwood, Tenn., said it has agreed to buy 114-bed Phoenixville (Pa.) Hospital from University of Pennsylvania Health System, Philadelphia. The asset-purchase agreement has been submitted to the state attorney general and Chester County (Pa.) Orphans' Court for approval. Terms will be disclosed after completion of the sale, expected June 30, said Brian Torrence, a spokesman for Phoenixville Hospital. Community has committed to spend either $90 million on renovations at the hospital or $120 million for a replacement facility, Torrence said. If completed, Community would own seven hospitals in Pennsylvania, all in the eastern half of the state. UPHS operates three other hospitals.
Separately, Pacer Health Corp., Miami, agreed to take over Minnie G. Boswell Memorial Hospital, Greensboro, Ga., 16 days before the critical-access hospital was scheduled to close. Pending state approval, ownership of Boswell Memorial will be transferred from Greene County Hospital Authority to for-profit Pacer, which also owns a hospital in Cameron, La. Rainier Gonzalez, chairman and chief executive officer of the firm, said Pacer will manage Boswell Memorial during a 90-day transition period while state officials review the deal. Pacer has agreed to cover any costs in excess of $2 million during the transition period and to keep the hospital open at least 18 months if the ownership transfer is approved, Gonzalez said. -- by Vince Galloro and Michael Romano