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Community Health Systems already owns Wilkes-Barre General and other facilities.
Tennessee-based Community Health Systems, owners of Wyoming Valley Health Care System, entered into a purchase agreement Thursday with Mercy Health Partners for the sale of Mercy Hospital, Scranton; Mercy Tyler Hospital, Tunkhannock; and Mercy Special Care Hospital, Nanticoke.
CHS bought Wyoming Valley Health Care System in May 2009.
Several medical office buildings, doctors’ practices, clinics and ancillary services are also part of the deal.
CHS has promised to hire all employees in good standing at the time the transaction is complete at the same position and pay, and honor seniority. All relationships with staff physicians will continue.
The transaction will be reviewed by the relevant state agencies. It will also be subject to regulatory and Vatican approval.
The sale price was not disclosed. CHS promised to invest at least $68 million in the first five years after the transaction and donate $2 million to a foundation to promote community health care. CHS also will continue all essential services for five years and maintain religious statuary and other symbols.
“The leadership of Mercy Health Partners engaged in a thoughtful and very thorough strategic planning process to ensure the best possible future for our hospitals in the Scranton area,” said Kevin Cook, MHP-NE president and CEO.
James Clemente, board chairman for MHP, said that “in addition to its financial strength, CHS is highly regarded for its physician recruitment successes, strong quality and customer service initiatives, vast group purchasing power, and the best practices it has developed in operating more than 125 hospitals across the country.”
Diocese of Scranton Bishop Joseph C. Bambera said he expects CHS will remain true to the tradition of treating patients and employees with respect and dignity.
“Given the present economic times and the current climate of health care in general, although understandable, it is unfortunate that the leadership and the board of Mercy Hospital has had to make this decision,” he said while thanking everyone in the Mercy system.
Michele Uhranowsky, an RN at Mercy in Scranton and president of the SEIU Healthcare Pa. chapter in Scranton, acknowledged challenges ahead, saying, “With that in mind, we call upon Mercy’s new owners to work closely with the members of our union to ensure that this transition is a smooth one and to ensure that the Mercy legacy and rich tradition of quality care lives on, no matter who is in charge.”