Financially troubled Tower Health has announced a definitive agreement to transfer the ownership and operation of Brandywine and Jennersville Hospitals to Canyon Atlantic Partners, LLC, on January 1, 2022.
Brandywine Hospital is about 25 miles north of the Delaware line on the Route 202 corridor. Jennersville Hospital is about 15 miles northwest of Newark.
Jennersville Hospital had been slated for closing, according to the Philadelphia Business Journal (subscription).
Canyon Atlantic Partners is a hospital ownership and management organization with experience and expertise in healthcare operations, healthcare finance, and the strategic integration of hospitals and healthcare resources.
Both Brandywine and Jennersville will remain open as acute care hospitals, and substantially all clinical and non-clinical staff in good standing at the hospitals will be offered employment by Canyon Atlantic Partners effective on the date of transfer.
Tower Health will coordinate with leaders from Canyon Atlantic Partners and share additional details on the transition process in the days and weeks to come.
“Like all hospitals, both Brandywine and Jennersville were impacted financially by Covid-19, but it is important to understand that the financial position of the hospitals has been consistently challenged over a long period of time. With these challenges in mind, Tower Health spent more than a year in an extensive process to identify a potential new owner for the hospitals,” Tower Health stated in a release.
Reading-based Tower snapped up hospitals outside its home territory but ran into financial difficulties, and piled up a crushing debt load.
Jennersville Hospital, the smallest hospital in the area, has struggled financially for years.
ChristianaCare, Delaware’s largest health care system, showed no public interest in the smaller community hospital, whichlies on the northern edge of its territory.