Franklin, Tenn.-based Community Health Systems' planned $120 million sale of Commonwealth Health to a newly formed nonprofit organization has collapsed.
WoodBridge Healthcare on July 30 signed a definitive agreement to acquire the three-hospital system from CHS. Commonwealth Health's hospitals include:
- Regional Hospital of Scranton (186 beds)
- Moses Taylor Hospital in Scranton (122 beds)
- Wilkes-Barre General Hospital (369 beds)
Both parties "mutually agreed" to terminate asset purchase agreement, according to CHS.
The transaction was terminated due to "WoodBridge's inability to satisfy the funding requirements in the purchase agreement because of certain developments affecting the expected proceeds available to WoodBridge from the issuance of publicly offered tax-exempt and taxable bond," CHS said in a statement.
WoodBridge intended to use bond financing debt to acquire the hospitals. The Wilkes-Barre Finance Authority in September issued a public notice outlining how it would act as the financing system to issue up to $180 million in tax-exempt revenue bonds on behalf of WoodBridge.
The proposed sale of CommonWealth Health was part of CHS' $1 billion hospital divestiture plan and would have cemented the for-profit system's exit from Pennsylvania.
CHS said it will evaluate future options for Commonwealth Health.
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