Temple Health has bought Redeemer Health’s 20% share of Chestnut Hill Hospital
The deal leaves Temple University Health System with an 80% ownership stake in the hospital that Tower Health sold in late 2022.
Temple University Health System acquired Redeemer Health’s 20% stake in Chestnut Hill Hospital on Tuesday, Temple’s CEO Mike Young said in an interview.
The deal gives Temple 80% ownership of the 148-bed hospital in the Northwestern section of Philadelphia. Philadelphia College of Osteopathic Medicine owns the remaining 20%. Temple manages the hospital.
“We’ve been planning it for a while, and it really wasn’t core for Holy Redeemer,” Young said, using Redeemer’s previous name. “I want to thank Holy Redeemer and their team for helping us get Chestnut Hill to where it is today.”
Temple, Redeemer, and PCOM paid Tower Health $28 million for Chestnut Hill at the end of 2022. Since then, the hospital’s financial performance has improved from a $30 million annual loss to break even, Young said.
The amount of Temple’s payment to Redeemer was not disclosed. Redeemer had paid $7 million for its share in 2022.
Redeemer did not respond to a request for comment.
The acquisition of Chestnut Hill gave Temple space to expand some of its advanced medical programs, such as cardiology, oncology, and urology. PCOM does not own a hospital, so its share of the purchase secured slots for training its students.
The rationale for the stake purchased by Redeemer — which has reported operating losses for eight straight years — was not as obvious. Its sole hospital, the 239-bed Holy Redeemer Medical Center, is about 10 miles away in Meadowbrook, Montgomery County.
Following the Chestnut Hill deal, two other Philadelphia-area operators with a single hospital were taken over by larger systems. St. Luke’s University Health Network acquired Grand View Health last month, and the University of Pennsylvania Health System acquired Doylestown Health in April.