Los Angeles, CA. Nixon Peabody LLP represented Tenor Health Foundation (Tenor) in its acquisition of three acute care hospitals in Pennsylvania from affiliates of Community Health Systems, Inc. (NYSE: CYH). Tenor is a nonprofit health system, founded to acquire and turn around financially struggling hospitals across the United States. Last year, Tenor acquired the shuttered Sharon Regional Medical Center in Sharon, Pennsylvania, and successfully reopened the facility in March 2025.
The signing of a definitive agreement between Tenor and CHS for the three-hospital deal was initially announced in October 2025, and the Pennsylvania Department of Health approved Tenor’s acquisition of the medical facilities on January 28, 2026. The transaction adds 186-bed Regional Hospital of Scranton, 122-bed Moses Taylor Hospital, both in Scranton, Pennsylvania, and 369-bed Wilkes-Barre General Hospital in Wilkes-Barre to the Tenor portfolio, along with outpatient clinics, surgery centers, and physician organizations that provide a full spectrum of care.
Nixon Peabody’s Healthcare team, led by Alexandra Busto, Harsh Parikh, and Patrick Callaghan, served as deal and regulatory counsel for Tenor’s hospital and physician group acquisitions. The Nixon Peabody team helped Tenor secure regulatory approvals at the local county levels and from the Pennsylvania Department of Health and advised on a range of issues, including labor and employment, financing, and nonprofit matters.
“We are proud to support Tenor in this acquisition that allows them to steward these essential community hospitals into their next chapter,” said Nixon Peabody Healthcare Partner Alexandra Busto. “This transaction preserves and strengthens critical healthcare services for patients and caregivers in the Lackawanna and Luzerne County communities.”
The deal involved complex financing through multiple sources, including the issuance of tax-exempt and taxable bonds for the acquisition of Wilkes-Barre General Hospital, for which Nixon Peabody’s Public Finance team—led by Project Finance & Public Finance partners Julie Seymour and John (Johnny) Hutchinson—served as borrower’s counsel.
In addition to Busto, Parikh, and Callaghan, the cross-office, cross-practice deal and regulatory team included Nixon Peabody partners Damian Myers, Valerie Breslin Montague, and David Prager; counsel Garth Bostic and Anita Pelletier; associates Vidaur Durazo, Meredith LaMaster, Freddy Lopez, Asim Lynch, Andrew Maglione, Alexandra Moore, Mambwe Mutanuka-Hiebel, and Sravya Rallapalli; and department attorney Shelagh Michaud.
In addition to Seymour and Hutchinson, the Nixon Peabody team that advised on the financing transaction for Wilkes-Barre General Hospital included counsel Eric Brenner and Sharone Levy.
See Tenor’s press release to learn more about this transaction.
