Becker's Hospital Review

12 CFO / FINANCE Tower Health to close 1 hospital, sell another By Alia Paavola A s part of a financial stabilization plan announced Sept. 28, Tower Health said it plans to close Jennersville Hospital in West Grove, Pa., and sell Chest- nut Hill Hospital in Philadelphia. e West Reading, Pa.-based health system said it will close Jennersville Hospital Jan. 1. Tower Health said Jennersville Hospital and its emergency department will remain open and will serve patients until the closing date. Tower Health said it will work with affected employees to offer them other suitable jobs within the health system or offer them pri- ority consideration to join Penn Medicine in Philadelphia. In addition to closing the hospital, Tower Health signed a letter of intent to sell Chestnut Hill Hospital and more than a dozen urgent care centers to Trinity Health Mid-Atlantic. Tower Health said the moves come aer months of thoughtful exploration and anal- ysis, and the actions will strengthen and re- shape the health system for decades. "While we have made considerable progress and are in a stronger financial and operational position than we were last year, we must make additional tough decisions that will firmly es- tablish our health system for decades to come," said P. Sue Perrotty, president and CEO of Tower Health. "With these changes, we are be- ginning a new chapter for Tower Health, one that reduces uncertainty about our future." Tower Health also said it is working to eval- uate options other than a closure for Coates- ville, Pa.-based Brandywine Hospital. Tower Health has been working on a plan to help stabilize its finances since 2020. In fiscal year 2020, the system had operating losses of more than $415 million. n Jefferson Health, Einstein Healthcare finalize merger, create 18-hospital system By Alia Paavola M ore than three years after signing a letter of intent to merge, Jef- ferson Health and Einstein Healthcare Network have finalized the deal. The Oct. 4 combination of the Philadelphia-based organizations brings together two academic medical centers and creates an integrated 18-hospital system with more than 50 outpatient and urgent care loca- tions. "The culmination of the multiyear process of bringing two great orga- nizations with more than 300 combined years of service, clinical excel- lence and academic expertise is not just a merger," said Stephen Klas- ko, MD, president of Thomas Jefferson University and CEO of Jefferson Health. "Einstein and the new Jefferson together represent an opportu- nity for the Philadelphia region to creatively construct a reimagining of healthcare, education, discovery, equity and innovation that will have national and international reverberations." The merger had previously faced antitrust scrutiny and delays from le- gal challenges. In particular, both the Federal Trade Commission and Pennsylvania's attorney general sued the health systems in attempts to block the deal. The FTC sued in February 2020, arguing that the combination of the two systems would reduce competition in both Philadelphia and Montgom- ery counties "to the detriment of patients." An appellate court denied the FTC's attempt to block the merger in December 2020, and the FTC officially dropped its challenge to the transaction in February 2021. The Pennsylvania attorney general also dropped his opposition to the merger in January 2021 after the FTC lost its case. Ken Levitan will continue serving as president and CEO of Einstein and add the role of executive vice president at Jefferson Health. In his new role, he will help guide the integration efforts. n Intermountain's outpatient imaging company to offer lower, flat-rate prices By Alia Paavola I ntermountain Healthcare launched Tellica Imaging, an outpatient imaging company that will offer flat-rate prices, the Salt Lake City-based organization said Sept. 27. Under the subsidiary, Intermountain will open and operate three stand-alone outpa- tient imaging centers in late 2021. Up to five more are planned for 2022. Intermountain said all locations will offer flat-rate MRI and CT scans at prices below the costs of hospital-based imaging. "While hospital-based imaging services re- main an important part of the care process, particularly in emergency situations and when complex imaging services are need- ed, many patients prefer to access CT scan and MRI imaging services in convenient settings closer to home," said Nannette Ber- ensen, PharmD, the board chair and inter- im CEO of Tellica. Dr. Berensen is also vice president and COO of clinical shared ser- vices at Intermountain. Dr. Berensen said Intermountain's hospi- tal-based imaging services will continue to grow, even with the launch of Tellica. n

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