Reading Health completes purchase of five hospitals from Community Health Systems

Reading Health System said Friday it completed its purchase of five hospitals in Southeastern Pennsylvania from Community Health Systems, forming a new organization called Tower Health.

The effective date of the deal, originally announced in May, is Sunday.

The purchased facilities are Brandywine Hospital in Coatesville; Chestnut Hill Hospital in Philadelphia; Jennersville Hospital in West Grove; Phoenixville Hospital in Phoenixville; and Pottstown Hospital in Pottstown. Reading's main acute-care facility is in West Reading.

The new entity employs 11,000 and has the potential to reach a population of 2.5 million people, the nonprofit said.

Reading has not disclosed how much it paid for the Community Health facilities. It notified bondholders on Sept. 14 that it was contemplating a municipal bond offering of up to $625 million to pay for the acquisitions and refund existing debt. Reading already had $574 million in long-term debt on June 30.

It had a narrow operating profit of $9.7 million on $1.05 billion in revenue for the year ended June 30.