Tenor Health Foundation, a California-based nonprofit known for stepping into financially distressed hospitals, has signed a definitive agreement to acquire three hospitals in Northeastern Pennsylvania currently owned by Community Health Systems (CHS). The deal—announced publicly on October 24, 2025—covers Regional Hospital of Scranton, Moses Taylor Hospital (also in Scranton), and Wilkes-Barre General Hospital, along with related outpatient centers and clinics. The transaction remains subject to customary regulatory approvals and is contingent on Tenor finalizing funding before closing, which Commonwealth and Tenor expect could happen before the end of the fourth quarter of 2025.
What the agreement covers
The hospitals named in the agreement are significant regional providers: the 186-bed Regional Hospital of Scranton, Moses Taylor Hospital in Scranton (reported as about 122 beds), and Wilkes-Barre General Hospital (reported as roughly 369 beds). Collectively they form a core of inpatient, emergency, surgical and outpatient services serving Lackawanna and Luzerne counties and a larger northeastern Pennsylvania patient catchment. The press release from Community Health Systems lists the facilities and notes that the transaction also includes “certain related businesses,” meaning outpatient centers and clinics tied to the hospital system.
Why Tenor — and who they are
Tenor Health Foundation describes itself as a nonprofit organization created to preserve and restore hospitals that are financially troubled, with a strategy that combines operational turnaround experience and community-focused nonprofit status to unlock different funding sources. Tenor’s leadership lists Radha A. Savitala as CEO and founder; the organization has a very recent track record of acquiring and reopening struggling community hospitals (for example, Sharon Regional Medical Center earlier in 2025). The Tenor site and local reporting show the group emphasizes restoring core services, rehiring local staff, and accessing public and philanthropic funding to stabilize operations.
Context: a troubled history and a second chance
The three Northeastern Pennsylvania hospitals have been in the middle of ownership and financial turbulence for more than a year. Community Health Systems had previously pursued divestitures and engaged with potential buyers, and a proposed sale to WoodBridge Healthcare was terminated in November 2024 after funding fell through. State officials and local leaders have been closely involved in trying to secure an operator that will maintain services for the community. The renewed effort that culminated in the Tenor letter of intent in August 2025 and the definitive agreement in October follows months of negotiation and community concern about the future of hospital services in the region.
Official statements and immediate reactions
Tenor’s leadership expressed optimism in local briefings and internal memos shared with medical staff and hospital employees. Radha Savitala is quoted in local coverage as saying the acquisition will preserve valuable healthcare resources “specifically in the most vulnerable communities.” Commonwealth Health and Tenor officials emphasized that the deal is conditional on Tenor finalizing funding and obtaining regulatory approvals. Local elected officials and members of Congress were reported to have been briefed as discussions advanced. Meanwhile, some local voices—including at least one hospital board—had previously expressed reservations about a Tenor takeover and appealed to state leadership for review; public debate about governance and community oversight is ongoing.
What Tenor brings to the table — track record and approach
Although Tenor is a relatively new national player, it has been active in several hospital turnarounds in 2024–2025. The group’s website and press coverage show a hands-on operational model: Tenor reopens shuttered facilities, recruits clinicians, restores inpatient and outpatient services, and seeks public grants and local investments to fund capital repairs and restart revenue cycles. Tenor’s reopening of Sharon Regional Medical Center earlier in 2025 is often cited by the foundation as evidence of their ability to restore services and create local jobs. Those who support Tenor point to the nonprofit model as a way to tap state/federal grants, philanthropic donations and other public financing that for-profit chains often cannot access.
Financial and regulatory hurdles ahead
Both Tenor and Commonwealth Health emphasized that the purchase is contingent on Tenor finalizing its funding package and securing regulatory approvals—common but consequential contingencies in hospital sales. The Community Health Systems press release explicitly states the closing is contingent on Tenor finalizing funding and customary closing conditions. That means Tenor will need to demonstrate to state health regulators, possibly the Federal Trade Commission if applicable, and lending or grant providers that it has the capital to operate the hospitals, meet payroll, keep emergency departments open, and invest in necessary facility repairs and upgrades. Local stakeholders have previously pointed to the risk that funding gaps or delays could destabilize operations in the interim.
What this could mean for patients and staff
For patients, the most immediate positive outcome would be continuity of care—if Tenor successfully completes the deal and keeps the hospitals open, communities that rely on these facilities would avoid service disruptions that can mean longer travel times for emergency care and specialty services. For staff, Tenor’s public statements and prior reopenings suggest a focus on rehiring clinical and support personnel; however, turnover, contract negotiations and lingering financial pressures will complicate staffing stability in the months ahead. On the flip side, community concerns—expressed by hospital board members and local clinicians during prior news cycles—include governance transparency, long-term clinical quality oversight, and whether a new nonprofit owner will sufficiently invest in capital needs.
Broader implications for regional health care
The sale is indicative of a larger trend in U.S. healthcare: the fragility of hospitals in rural and post-industrial regions, and the increasing role of nonprofit foundations, community coalitions, and alternative operators stepping in where big for-profit systems divest or shutter facilities. Pennsylvania, in particular, has faced many hospital closures and distressed facilities in recent years. A successful Tenor acquisition could become a model for how nonprofit operators can preserve local access—but it could also raise questions about scalability, oversight, and whether the nonprofit model can sustainably finance long-term capital and staffing needs across multiple facilities.
Local politics and the role of state officials
The negotiation history shows state-level engagement. Community Health Systems worked with the office of Pennsylvania Governor Josh Shapiro and members of the state General Assembly to identify an operator to sustain Scranton-area operations after previous deals stalled. That coordination reflects how state governments increasingly participate in hospital transitions—either by facilitating introductions, offering matching funds or seeking assurances about continued service lines. Local elected officials and federal representatives have also been looped in, reflecting the high stakes for regional healthcare access and employment.
Risks and unknowns
Key unknowns include the exact terms of the deal (which have not been publicly disclosed), the size and structure of Tenor’s funding package, and the timeline for regulatory sign-offs. Another possible sticking point is integration of clinical systems, payer contracts, and residency or academic affiliations—complex operational pieces that take time to negotiate and execute. Labor relations could also be a flashpoint if unions or staff representatives push for specific protections. Finally, while Tenor has reopened hospitals before, scaling that playbook to manage three sizable hospitals simultaneously—each serving different community needs—will test the foundation’s operational capacity.
What to watch next
- Funding confirmation: Tenor must finalize its financing. Public confirmation or regulatory filings that show secured capital will be the clearest signal the deal is on track to close.
- Regulatory approvals: Expect state health department filings and potential federal review. Monitor statements from the Pennsylvania Department of Health and any filings required under state hospital transfer rules.
- Labor and clinical staffing announcements: Watch for Tenor’s operational plans—whether they will re-employ existing staff, renegotiate contracts, or run aggressive recruiting drives.
- Local oversight and governance details: Details about board composition, community input mechanisms and local leadership appointments will indicate how Tenor intends to integrate the hospitals into its nonprofit governance structure.
Conclusion: cautious optimism, with a long road ahead
The Tenor Health Foundation’s agreement to acquire three CHS hospitals in Northeastern Pennsylvania is an important development for communities concerned about the fate of local inpatient and emergency services. Tenor brings a model and some prior experience in hospital turnarounds, and the nonprofit structure may unlock funding avenues that were not available under prior ownership. Yet the deal’s success hinges on funding, regulatory approvals, and Tenor’s ability to manage the complex human, clinical, and capital challenges that come with operating multiple hospitals. For patients, staff, and regional leaders, the announcement is a hopeful step—but not a guarantee—toward stabilizing care in a region that has seen too many hospital crises. Close attention to funding developments and state-level reviews over the coming weeks will tell whether this hopeful step becomes a durable solution.
