Agreement Signed to Sell Hospitals to Reading Health System
Expansion Holds Future Benefit for Hospital, Employees, Medical Staff, and Communities
Reading Health System (RHS) and subsidiaries of Community Health Systems (CHS) have signed an Asset Purchase Agreement for Reading Health to acquire five Pennsylvania hospitals. The five hospitals include: Brandywine Hospital in Coatesville; Phoenixville Hospital in Phoenixville; Pottstown Memorial Medical Center in Pottstown; Jennersville Regional Hospital in West Grove; and Chestnut Hill Hospital in Philadelphia.
This acquisition supports Reading Health’s strategic vision of remaining a strong, regional, integrated provider/payer system. The new system will serve a population of 2.5 million individuals.
The transaction is expected to close this summer, subject to customary regulatory approvals and closing conditions.
“Reading Health has a rich 150 year history of providing high-quality, cost-effective healthcare to the communities we serve. The proposed acquisition will ensure the continued development of acute care and related assets, and provider network capabilities to best serve our region in a cost-effective manner. Integrating our new health plan into the continuum of services offers this expanded region increased access to value based care and further controls costs for employers and individuals” said Clint Matthews, President and CEO at Reading Health System. “Also, by expanding the scope of our clinical programming through this acquisition, the new system will maximize opportunities to leverage best practices of each organization and further coordinate our system-wide brand of high-quality care across the entire system.”
To better reflect its position as a strong, integrated regional health system, Reading Health is introducing a new system name: Tower Health. Details of the new brand will be introduced this summer.