Texas finance firm to buy two Tower Health hospitals

Beginning January 1, the Texas-based refurbishment company will take over two combat-ready Tower Health hospitals, one of which was due to close on the same day.

Canyon Atlantic Partners, LLC will take over and operate the Brandywine and Jennersville Hospitals in West Reading, Pennsylvania, Towers and Jennersville, Tower said Monday. The terms of the final agreement were not disclosed. The deal saves Jennersville Hospital from closing after Tower’s board of directors signed an agreement in September to close the facility as part of a broader restructuring plan.

The agreement states that Canyon Atlantic Partners, headquartered in the Austin area, will offer employment to all clinical and non-clinical staff of hospitals in good standing on the date of transfer. The recovery firm will also take over ownership of all inpatient and outpatient hospital-related services.

“Extensive work has gone into finding a solution for the Jennersville and Brandywine hospitals, and we are delighted to find one that keeps both hospitals open,” Tower Chairman Tom Work said in a statement. “This transfer of ownership will ensure continued easy access to Jennersville and Brandywine community care services.”

The nonprofit system Tower declined to comment outside the scope of the press release. Canyon Atlantic did not respond to a request for comment.

Tower has suffered heavy financial losses in recent years, including an operating loss of $ 439 million on revenue of $ 1.9 billion in FY2020, representing nearly 23% of its loss margin. In fiscal 2021, the loss increased to $ 614 million on revenues of $ 2.2 billion, or 28% of profit.

Executives said COVID-19 damaged the system, but Tower was losing money before the pandemic. The losses were most concentrated in five emergency hospitals, which Tower bought from commercial public health systems in 2017. In FY2020, these hospitals lost a total of $ 235 million.

As part of the restructuring announced in September, Tower said it plans to sell Chestnut Hill Hospital and more than a dozen emergency centers to Trinity Health Mid-Atlantic.

David Edge, CEO of Canyon Atlantic, said in a statement that his company is honored to be selected and that it will prioritize working closely with the hospital communities and medical staff.

“We look forward to leveraging our significant experience in emergency hospital rehabilitation and development to further enhance the hard work of the excellent medical staff at Brandywine and Jennersville Hospitals and ultimately impact the larger community they serve.” he said.

Canyon Atlantic has been incorporated as a limited liability company in Austin, Texas since October 2017, according to a government agency. Public Accounts Controller Website… A separate company called Canyon Atlantic Partners was incorporated in August 2021 in Lakeway, a city northwest of Austin. Cray is the registered agent of both businesses.

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