5 Philly-Area Hospitals Sold To Reading Health: 2017 In Review

Rumors regarding the sale of several local hospitals had been swirling for months before the deal was announced in May and the acquisition was finalized in October. A version of the following story was originally published in Patch on Oct. 2.

The former Reading Health System has completed its acquisition of five hospitals in the region from Community Health Systems, they announced on Friday afternoon. Reading has also re-branded their company to Tower Health.

The acquisition, which was announced back in May, is effective Oct. 1.

The agreement includes the sale of five hospitals owned by Community Health Systems: Phoenixville Hospital, Brandywine Hospital in Coatesville, Chestnut Hospital in Philadelphia, Jennersville Regional Hospital in West Grove, and Pottstown Memorial Medical Center.

"We are coming together to create an even more dynamic, expansive and nationally recognized health system," said Clint Matthews, President and CEO of Tower Health. "Our new name, Tower Health, reflects our collective strength, innovative spirit and bold commitment to taking healthcare to new heights."

Shortly after the completion of the sale, Independence Blue Cross announced that Tower Health's new properties would not be covered in the Independence network because of contract disagreements. However, an agreement between the two sides was reached just days later.

"Providing patients, members, and communities continued access to quality, affordable care in this region is paramount for both organizations; and resolving these discussions quickly was in the best interest of members and patients," a statement issued jointly by Clint Matthews, president and CEO of Tower Health, and Anthony V. Coletta, president of Independence Blue Cross Facilitated Health Networks, read. "We are confident that this agreement will serve as the foundation for a strong relationship between our two organizations."

Former owners Community Health, a for-profit medical business based in Franklin, Tennessee, had been rumored to be looking for a buyer for its five area hospitals since last September.

Tower also owns Reading Hospital's Reading Hospital Rehabilitation at Wyomissing, Reading Hospital School of Health Sciences, and Reading HealthPlex, an innovative advanced surgical center; Tower Health Medical Group, a comprehensive network of primary and specialty providers; Tower Health Partners, a clinically integrated network; and Tower Health/UPMC Health Plan.

Patch file photo