UPDATE 1: 4:19 p.m. ET 8/25/2022: Tower Health is requesting bondholder consent to the sale of its Chestnut Hill Hospital to an alliance composed of Temple Health, Redeemer Health and Philadelphia College of Osteopathic Medicine, according to a
notice posted to EMMA by bond trustee UMB Bank. According to the notice, the transaction would be a sale of substantially all of the assets of obligated group member Chestnut Hill Hospital LLC, and the purchaser would not assume any bond obligations under the proposed deal.
Absent the requested consent from a majority of bondholders, however, the bond indenture would require the purchaser to become a member of the obligated group and assume liabilities on the bonds, according to the notice. UMB Bank says that the sale is conditioned on Tower Health obtaining bondholder consent and the purchaser obtaining a waiver of the requirement to assume the bonds and join the obligated group.
The notice says that the proposed transaction is in furtherance of Tower Health’s “ongoing strategies” to address its financial performance by “seeking strategic partners for certain lines of business and physical assets, and a System-wide performance improvement effort.”
Original Story 11:54 a.m. UTC on Aug. 8, 2022
Tower Health Announces Sale of Chestnut Hill Hospital to ‘Alliance’ of Temple Health, Redeemer Health and Philadelphia College of Osteopathic Medicine
Relevant Document:
Press Release
Tower Health has signed a “definitive agreement” to sell its Chestnut Hill Hospital to an alliance composed of Temple Health, Redeemer Health and Philadelphia College of Osteopathic Medicine, according to a Tower Health press release issued today. The hospital will be renamed Temple Health-Chestnut Hill Hospital and will remain a freestanding acute care hospital. Tower Health said it anticipates that the sale will close by the end of the year “pending review and approval by regulators and the Tower Health bond holders.”
Following the acquisition, the alliance will own and control a newly formed not-for-profit limited liability company for the hospital, according to the press release. Temple University Health System will be the majority equityholder and will manage the hospital, the press release says.
The press release does not include any financial details of the contemplated transaction.
In January, Tower Health and another potential purchaser, Trinity Health Mid Atlantic,
mutually terminated the previously proposed sale of Chestnut Hill Hospital after determining that abandoning the sale was in the best interest of both organizations.