Tenor Health Acquires Commonwealth Hospitals Amid Local Challenges

The healthcare landscape in Pennsylvania has undergone significant changes in 2025, highlighted by the acquisition of Commonwealth Health’s hospitals by Tenor Health Foundation. This deal, along with the closure of Keystone Mission and the decline of Rite Aid, showcases the evolving challenges and responses within the region’s health and human services.

Tenor Health’s Major Acquisition

In October, the Tenor Health Foundation finalized an agreement to acquire several hospitals from Commonwealth Health, including the prominent Wilkes-Barre General Hospital and the Regional Hospital of Scranton. This strategic move comes after another proposed acquisition by WoodBridge Healthcare fell through last year.

Radha A. Savitala, the CEO of Tenor, expressed enthusiasm about the acquisition, stating, “This acquisition exemplifies our organization’s commitment to preserve valuable healthcare resources — specifically in the most vulnerable communities.” Tenor plans to finance the deal with up to $47 million in tax-exempt bonds and an additional $25 million in taxable bonds, as approved by the Luzerne County Council in November.

While Tenor aims to enhance healthcare services, the acquisition raises concerns regarding local tax revenues. As a nonprofit organization, Tenor will not pay property taxes, potentially resulting in a loss of approximately $1.9 million annually for Luzerne County and surrounding municipalities.

Nurses Secure New Labor Agreement

In April, registered nurses at Geisinger Health System’s Luzerne County facilities ratified a new three-year contract. Approximately 800 nurses from the Geisinger Wyoming Valley Medical Center and other facilities voted in favor of the agreement, which includes substantial pay raises ranging from 13% to 26% over the contract’s duration.

The Service Employees International Union Healthcare Pennsylvania reported that the new contract addresses critical issues such as staffing levels and competitive wages. Union members had previously gone on strike for five days in February to voice their concerns about these matters.

Impact of Government Shutdown on SNAP Benefits

Another pressing issue affecting local residents was the temporary halt of Supplemental Nutritional Assistance Program (SNAP) benefits in November due to a federal government shutdown. This interruption caused significant distress among more than 1.93 million eligible Pennsylvanians.

Following legal actions by various states, the SNAP program resumed in mid-November, providing crucial support to approximately 146,644 residents in Lackawanna, Luzerne, Schuylkill, and Carbon counties.

Keystone Mission Faces Closure

The closure of Keystone Mission has also had a profound impact on the community. By July 10, 2025, the organization will shut down two of its three shelters in Wilkes-Barre and Scranton. The decision was prompted by rising operational costs and diminishing donations, leading to a significant reduction in staff from 21 employees to just six.

Former CEO Justin Behrens noted the challenges faced by the organization, stating, “The board needed to start making a decision of what’s the direction of the mission, to keep it sustainable.” Although Keystone Mission will continue operations at its Sherman Hills facility, the closures represent a significant loss for local homeless services.

Rite Aid’s Decline

The retail landscape has also seen transformations, with nearly a dozen Rite Aid stores in Luzerne County shuttering their doors this year. The pharmacy chain filed for Chapter 11 bankruptcy protection in May, burdened by substantial debt and ongoing legal issues related to the dispensing of prescriptions for painkillers.

Rite Aid’s financial struggles, which began with a bankruptcy filing in October 2023, led to the closure of over 1,200 locations nationwide. Founded in Scranton in 1962, Rite Aid’s decline marks a significant shift in the region’s retail pharmacy sector.

As 2025 progresses, these developments underscore the evolving challenges and opportunities within Pennsylvania’s healthcare and human services landscape, highlighting the critical need for sustainable solutions to support vulnerable communities.