close
close

ChristianaCare, Delaware’s largest healthcare system, has agreed to buy Jennersville Tower Health, which has been closed since Dec. 31, the nonprofit Wilmington said Wednesday. The price was not disclosed.

The sale, expected to be completed within 30 to 60 days, includes a 52-bed hospital on 12 acres in Penn Township, Chester; Tower interests in two affiliated medical office buildings; and an additional 24-acre parcel of land behind the hospital.

Tower is also trying to sell the closed Brandywine Hospital near Coatesville, Philadelphia’s Chestnut Hill Hospital and a set of emergency centers as it tries to recover from a money-losing expansion that ran from 2017 to 2019.

ChristianaCare, which acquired two Tower medical practices in Jennersville and West Grove in March, is still in talks for an even larger move to Pennsylvania through a potential acquisition of Crozer Health Prospect Medical Holdings Inc. in Delaware County. In February, when announcing a preliminary deal with Crozer, ChristianaCare said a final deal was expected by this month.

Planning for the services ChristianaCare will offer in Jennersville, which will be called the ChristianaCare West Grove Campus, is in its early stages.

“We know that the loss of emergency services due to the closure of Jennersville Hospital is a major concern for society, and that is definitely something we are discussing,” Jennifer Schwartz, Chief Strategy Officer of ChristianaCare, said in a press release.

The loss of emergency service was of particular concern to residents of the nearby Jenners Pond retirement community. The shutdown has forced emergency services in southwest Chester County to cover each other’s territories because ambulances now have much more time to travel to hospitals in Lancaster, Newark or West Chester.

ChristianaCare now operates three hospitals: the 906-bed, 1.3 million-square-foot Christiana Hospital in Newark; Wilmington Hospital, a 321-bed facility in Wilmington; and Union Hospital, a 72-bed emergency department in Elkton, Maryland. More than 13,000 people work in the system.

This is Tower’s second deal to sell Jennersville Hospital. Texas-based Canyon Atlantic Partners agreed in November to pay $12 million for Jennersville and Brandywine, but that deal fell through when Canyon Atlantic couldn’t find the money. The agreement stated that Canyon would pay Tower an additional $4.5 million contingent on the future profitability of the hospitals.

Talks about the future of St. Christopher’s Children’s Hospital in North Philadelphia represent another front in the Tower’s quest to fix its financial situation. Tower acquired St. Chris in the same bankruptcy in 2019 that involved the Hahnemann Hospital, in a 50-50 joint venture with Drexel University. Tower and Drexel are trying to bring in additional owners and backers to help manage the losses of the insurance network provider, with a goal of closing a deal by the end of this month.

Tower on Wednesday did not give an immediate response on the status of these negotiations.

Operating loss Chris was $10.6 million on $207.4 million in revenue for the nine months ended March 31. Overall, Tower lost $137.3 million on $1.7 billion in revenue during this period.

By them

Leave a Reply

Your email address will not be published.