Franklin, Tenn.-based Community Health Systems' planned sale of Commonwealth Health to WoodBridge Healthcare has been terminated.
Here are five things to know:
1. Newly formed nonprofit organization WoodBridge Healthcare signed a definitive agreement on July 30 to acquire the three-hospital system from CHS for $120 million. The deal would include the three hospitals, along with their associated ASCs, clinics and imaging centers.
2. Both parties "mutually agreed" to terminate asset purchase agreement due to "WoodBridge's inability to satisfy the funding requirements in the purchase agreement because of certain developments affecting the expected proceeds available to WoodBridge from the issuance of publicly offered tax-exempt and taxable bond," CHS said in a statement.
3. WoodBridge intended to use bond financing debt to acquire the hospitals. In September, the Wilkes-Barre Finance Authority issued a public notice outlining how it would act as the financing system to issue up to $180 million in tax-exempt revenue bonds on behalf of WoodBridge.
4. The proposed sale, which was part of CHS' $1 billion hospital divestiture plan, would have cemented the system's exit from Pennsylvania.
5. Since 2020, CHS has divested 29 hospitals, most recently selling Tennova Healthcare-Cleveland (Tenn.) to Vitruvian Health in Dalton, Ga., on Aug. 1. The 351-bed facility was sold for $160 million.