Tenor Health Foundation Inc. receives state approval for Wilkes-Barre General Hospital acquisition

Tenor Health Foundation has received the required Pennsylvania Department of Health approval to acquire Wilkes-Barre General Hospital and two Lackawanna County hospitals, Tenor Chief Executive Officer and founder Radha Savitala said in a statement Wednesday.

“We thank the Department for its review and thank the Shapiro Administration for their oversight in the process,” Savitala’s statement said, referring to state Gov. Josh Shapiro.

Savitala said U.S. Rep. Rob Bresnahan was “relentless in his efforts to ensure access to healthcare in the region remains strong” and added state Rep. Bridget Kosierowski was “instrumental in getting the approval completed for her communities.”

“We are humbled by the support of everyone involved and look forward to providing care in Northeast Pennsylvania,” the statement said.

Bresnahan, R-Dallas Township, issued a release after a Wednesday afternoon Facebook post announcing state approval of the ownership change, allowing Tenor Health to assume control of Wilkes-Barre General and two Lackawanna County hospitals — Regional Hospital of Scranton and Moses Taylor Hospital — from their current owner, Commonwealth Health.

The approval comes after months of negotiations to keep the hospitals open, he said.

“From day one, our top priority has been protecting continuity of care in Northeastern Pennsylvania by keeping our hospitals open and serving patients,” Bresnahan said in the release. “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.”

The future of all three hospitals has been uncertain for more than a year.

A previous attempt to sell the properties fell through on Nov. 26, 2024, when the nonprofit Woodbridge Healthcare announced it had failed to secure financing for $180 million in tax-exempt bonds, which terminated the sales agreement.

For-profit Commonwealth Health initially purchased Wilkes-Barre General in 2009.

In recent years, the company has significantly scaled back services, abruptly ending inpatient and delivery services in July 2023.

Savitala told Luzerne County Council in November that her nonprofit was established to own and operate financially struggling hospitals, ensuring access to health care in communities where there is a risk of competition or hospital shutdowns.

In addition to the three hospitals, the acquisition will include all physician practices and clinics, ambulatory surgery centers, and real estate, Savitala had said.

Staff recruitment and capital improvements were among the needs that must be addressed at Wilkes-Barre General, she had said.

Tenor had initially hoped to close on the transaction in December. In a Jan. 8 text reply, Savitala had said Tenor was committed to the transaction closing and stood ready to close once approval was obtained.

Luzerne County Council had unanimously granted authorization in November for Tenor to include tax-exempt bonds in its approximately $72 million borrowing package to acquire Wilkes-Barre General. The county is not pledging or obligating funds and won’t be liable for any payments, officials emphasized.

To make the request more palatable for county officials, Tenor agreed to pay the county $850,000 in lieu of taxes annually from 2026 through 2029.

Tenor won’t be required to pay — and thus borrow funds — for the purchase of the two Lackawanna County hospitals because those two facilities have been losing money, according to a past statement from Bart Plank, head of health care public finance at Cain Brothers, a division of Key Bank.

Due to the use of tax-exempt bonds, Tenor’s acquisition must go through the Northeastern Pennsylvania Hospital and Higher Education Authority, an entity created by Luzerne County to provide tax-exempt bond status for nonprofit health care providers and educational institutions to help them attract investors.

Authority Attorney Peter Moses said Wednesday he is awaiting details on the transaction’s closing date.

Kosierowski, D-Waverly, said in Wednesday’s release the state approval “reflects what can be accomplished when we work together with a shared goal of protecting patients and preserving jobs.”

“From the very beginning, my focus has been clear: safeguarding the healthcare workforce and ensuring continuity of care for the people of Northeastern Pennsylvania,” she said. “I will continue to be supportive in any way I can as Tenor moves forward, and I look forward to working collaboratively to ensure these facilities remain strong and responsive to community needs.”