Tower Health announced today that it has secured a new owner for Brandywine and Jennersville hospitals, and that both facilities will remain open as acute care hospitals in Chester County.
Tower Health has entered into a definitive agreement with Canyon Atlantic Partners LLC, which will assume ownership and operation of the facilities effective Jan. 1.
Canyon Atlantic Partners is a hospital ownership and management organization. Details of the deal were not released.
“There was extensive work done to find a solution for Jennersville and Brandywine Hospitals, and we are pleased to have identified one that keeps both hospitals open,” C. Tom Work, chair of Tower Health’s board of directors, said in a news release. “This transfer of ownership will ensure continued, convenient access to care for the Jennersville and Brandywine communities. It will also further advance Tower Health’s financial and operational turnaround, positioning us to deliver on our mission well into the future.”
Under the agreement, Canyon Atlantic Partners will assume all Brandywine and Jennersville Hospital assets and operations as of Jan. 1. This means all clinical and nonclinical staff in good standing at the hospitals will be offered employment by Canyon Atlantic Partners effective on the date of transfer, Tower said.
Canyon Atlantic Partners will also assume ownership of all inpatient and outpatient services associated with the hospitals.
The announcement that Tower would close Jennersville had led to an outcry from Chester County elected officials, medical professional and chamber of commerce leaders. They were also worried about the future of Brandywine. The loss of the hospitals would leave many without access to hospital care, they said.
Tower said it heard the calls to keep Jennersville open.
“We listened to the community and redoubled our efforts to keep Jennersville and Brandywine hospitals open,” said P. Sue Perrotty, president and CEO of Tower Health. “We are deeply grateful for the commitment of our staff, who showed steadfast dedication to our patients throughout this process. We have a lot of hard work ahead but believe this transaction represents the best opportunity for the two hospitals.”
While planning for the transfer of operations continues, Tower Health has suspended planning for the closure of Jennersville Hospital.
“Canyon Atlantic Partners is honored to be chosen to build on the accomplishments of Tower Health and will prioritize working closely with their communities and medical staff to ensure we meet their needs,” David Kreye, president and CEO of Canyon Atlantic Partners, said in a news release. “We look forward to bringing our substantial experience in acute care hospital turnaround and growth to further elevate the hard work of the excellent medical staff at Brandywine and Jennersville hospitals, and ultimately making an impact with the greater community that they serve.”
Tower recently wrote off $370 million in value of its hospitals. Not including the write-off, Tower posted a $243.5 million loss for fiscal 2021, which ended June 30. It’s regarded as an improvement over fiscal 2020, when it lost $415.3 million. Tower announced in September it would close Jennersville and sell Chestnut Hill and about 20 urgent cares to Trinity Health Mid-Atlantic.
Tower contended in the Jennersville closure letter that it had made substantial investments in both the physical space and human resources to the 52-bed hospital viable but just could not make it work.
Tower said despite the continued efforts, Jennersville continues to sustain substantial losses and experience substantial competition in the service area. Tower has been unable to recruit new medical staff in key specialties.
Patient volumes continue to trend down and staff turnover and vacancies are excessive, according to the closure letter.
Jennersville has 52 staffed beds and 379 employees.
Continuing coverage of Tower Health
Source: Berkshire mont