WILKES-BARRE — Community Health Systems, which owns six hospitals in the region, has announced it is divesting additional hospitals in 2018, but it’s not saying which ones.
And one of the possible purchasers will only say it is constantly looking to explore opportunities.
In a statement released Thursday, CHS said, “It is our practice not to announce which hospitals will be divested unless and until we reach a definitive agreement for sale.”
CHS currently owns Wilkes-Barre General Hospital.
The company statement went on to say:
“Regarding our operations in northeast Pennsylvania: Commonwealth Health is a strong, dynamic healthcare system. Physicians and employees at hospitals across Commonwealth Health are focused on providing excellent care for their patients and Community Health Systems is very proud to support their work.
“We have made significant investments in northeast Pennsylvania, including major capital projects in Wilkes-Barre and Scranton, and we look forward to continuing to support Commonwealth Health and the quality care its facilities provide for the communities they serve.”
The name of one possible purchaser that has been mentioned is UPMC — University of Pittsburgh Medical Center.
Susan Manko, senior director of Public Relations at UPMC and the University of Pittsburgh Schools of the Health Sciences, offered a few comments on the rumors.
”There is no news here,” Manko said via email. “As a leading health care provider and insurer, UPMC is constantly in discussions with hospitals and organizations to explore opportunities to improve patient care and services for our communities.”
Another possible suitor being mentioned is Lehigh Valley Health Network. Rob Stevens, media relations specialist at LVHN, responded: “LVHN does not comment on the existence of any conversations that may or may not be taking place with other providers.”
CHS purchased the Wyoming Valley Health Care System for $271 million in a deal that was announced in August 2008.
Also included in the deal were First Hospital Wyoming Valley, CHOICES, Community Counseling Services, Heritage House, Wyoming Valley Manor, the Visiting Nurse Association, and United Health and Hospital Services.
The sale was significant in that the hospital system was now owned by a tax paying for-profit corporation after being operated as a nonprofit. UPMC is a nonprofit entity.
Based on current tax rates, Wilkes-Barre Hospital Company LLC pays $486,646 to the Wilkes-Barre Area School District annually and $166,705 to Luzerne County for the hospital property. Wilkes-Barre City received taxes of $781,050, according to city records.
Wilkes-Barre Hospital also pays real estate taxes on more than 60 other properties that are assessed separately, including some residential structures.
UPMC, Highmark reach agreement
On a related note, Gov. Tom Wolf on Thursday announced a landmark agreement between UPMC and Highmark that creates terms to provide access to critical, unique services and to certain facilities that are the only hospital in a community.
“My commitment has always been to put the patients and communities served by UPMC and Highmark first, and make sure consumers who need vital, at times life-saving health care, can get it,” Wolf said in a news release. “I want to thank both companies for sharing this commitment, and for working together to reach this agreement for the benefit of so many people in western Pennsylvania.”
UPMC and Highmark have been working under consent decrees signed in 2014 that provide continued, in-network access to care for customers of both companies. However, these agreements will expire at the end of June 2019, at which time, without Thursday’s announced terms, commercial customers of Highmark would be denied in-network access to these community and specialty UPMC providers and facilities.
“The bottom line is this agreement means all health care consumers in western Pennsylvania will continue to have access to vital health care, and the uncertainty that has plagued so many people for several years can now end,” Wolf said.