Brandywine and Jennersville Hospitals Set to Close After Tower Health Calls Off Proposed Sale

What to Know

Tower Health plans to close both medical centers — Jennersville Hospital in West Grove on Dec. 31 and Brandywine Hospital in Coatesville on Jan. 31 — resulting in the loss of nearly 800 jobs, after calling off its proposed deal with a Texas-based firm.
The terminated deal with Canyon Atlantic Partners of Austin, announced last month, had called for the hospitals to change hands on Jan. 1. Financial terms were not disclosed.
In a memo to health system staff distributed Thursday morning, Tower Health CEO Sue Perrotty said the deal was called off because Canyon Atlantic Partners "has not been able to demonstrate that it is capable of making an effective transfer of ownership and operation of these two hospitals."

Tower Health has called off its proposed deal to sell Brandywine and Jennersville hospitals to a Texas-based turnaround firm.

The Berks County health system now plans to close both medical centers — Jennersville Hospital in West Grove on Dec. 31 and Brandywine Hospital in Coatesville on Jan. 31 — resulting in the loss of nearly 800 jobs.

The terminated deal with Canyon Atlantic Partners of Austin, announced last month, had called for the hospitals to change hands on Jan. 1. Financial terms were not disclosed.

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In a memo to health system staff distributed Thursday morning, Tower Health CEO Sue Perrotty said the deal was called off because Canyon Atlantic Partners "has not been able to demonstrate that it is capable of making an effective transfer of ownership and operation of these two hospitals."

In September, Tower Health said it would close Jennersville Hospital at the end of the year in a cost-saving move, but that was temporarily put on hold when the Canyon deal was signed.

That deal would have been difficult to complete by the Jan. 1 deadline because the sale needed approval from the Pennsylvania Attorney General's office and the Chester County Orphans Court, which oversees nonprofits.