SCRANTON, Pa.—A judge in the Lackawanna County (Pa.) Orphans' Court has approved the sale of three hospitals in northeast Pennsylvania to Community Health Systems, Franklin, Tenn., according to a copy of the judge's order. Investor-owned Community will pay approximately $150 million to acquire three hospitals in the Scranton area from Catholic Health Partners, Cincinnati, according to Gladys Bernet, a spokeswoman for CHP's Scranton system.
Regional News/Northeast: Judge approves sale of three Pennsylvania hospitals to Community Health Systems, and other news
The company also has committed to investing $68 million in the hospitals within the first five years after closing the deal, according to Tomi Galin, a Community spokeswoman. The hospitals will not remain Roman Catholic hospitals after the transaction, and they will be renamed. The hospitals will not perform abortions or provide euthanasia services, Galin said. Neither Bernet nor Galin could provide a timeframe for closing the deal. CHP announced its intention to sell the system last October because efforts to consolidate Scranton's three general acute-care hospitals had failed (Oct. 18, 2010, p. 12).
ERIE, Pa.—The University of Pittsburgh Medical Center acquired the Hamot Medical Center, a 351-bed hospital in Erie. UPMC, a Pittsburgh-based health system with 10 other Pennsylvania hospitals, said the renamed UPMC Hamot would continue to operate its cardiac, neurosurgery, neurology, orthopedics, oncology, plastic surgery, and level-two trauma services for at least the next 20 years. The agreement reached in January calls for UPMC to invest
$300 million in Hamot toward expanding and enhancing medical services, according to a news release. The hospital’s integration will be overseen by a newly created governing board, UPMC said. In a notice to bondholders, the system said it would assume outstanding debt of the Hamot Health Foundation.
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