Tower Health paid $418 million for five community hospitals in S.E. Pennsylvania
The price paid by Tower Health for its massive expansion of operations in the Philadelphia region had been kept under wraps until now.
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Tower Health, in a massive expansion of its operations in Southeastern Pennsylvania, paid $418 million in cash for the five Community Health Systems Inc. hospitals it bought on Sept. 29, Community Health said in its quarterly report to the Securities and Exchange Commission.
The price had not been disclosed publicly prior to the SEC filing Thursday.
The five hospitals are Brandywine Hospital in Coatesville (169 beds), Chestnut Hill Hospital in Philadelphia (148 beds), Jennersville Hospital in West Grove (63 beds), Phoenixville Hospital in Phoenixville (151 beds), and Pottstown Memorial Medical Center in Pottstown (232 beds).
The facilities had a $17 million operating loss on $653 million in total revenue in the fiscal year ended June 30, 2017, according to a bond-offering statement used to raise $590.5 million for the acquisition and other items. With the exception of Pottstown Memorial, the facilities have single-digit market shares in highly fractured markets.