After five months of deliberations, Lehigh Valley Health Network and Bucks County-based StoneBridge Healthcare have decided not to bid on the financially troubled Tower Health, writes John George for the Philadelphia Business Journal.
Lehigh Valley Health originally considered a potential deal with Tower, the parent company for Brandywine Hospital in Coatesville, Jennersville Hospital in West Grove, Phoenixville Hospital, and Pottstown Hospital, because such a union made geographical sense.
“They are in a neighboring market,” said Tom Marchozzi, executive vice president and CFO of Lehigh Valley Health. “We’re not in any overlapping territories.”
The health system then joined forces with StoneBridge Healthcare, the company formed recently to rescue distressed hospitals and health systems, to determine if a mutually beneficial deal could be reached.
However, after many discussions and one meeting with Tower Health’s board of directors, the joint venture decided not to make an offer.
“We collectively decided not to submit a bid,” said Joshua Nemzoff, CEO of StoneBridge Healthcare.
He said that he could not give any additional comments on the decision because both companies have signed non-disclosure agreements with Tower.
Read more about Tower Health in the Philadelphia Business Journal.