by Pete Mazzaccaro

Chestnut Hill Hospital announced Monday, May 30, that it will soon be acquired by Reading Health System, a nonprofit healthcare company based in Reading Pennsylvania.

Chestnut Hill is one of five hospitals in the region being sold for an undisclosed sum to Reading by Chestnut Hill’s parent company Community Health. The expansion more than doubles the size of the small healthcare system that operated approximately 700 beds, most in its flagship Reading Hospital.

In a release, Chestnut Hill Hospital CEO John Cacciamani said the purchase agreement includes a commitment from Reading to continue the employment of “all active employees in good standing when the transaction is complete.” All physicians and other medical staff with privileges at the hospital should also continue.

“Reading Health System is a respected organization, and we are excited to be joining with them for the future,” Cacciamani said. “Our hospitals have a common vision of providing the highest quality care, medical education and compassionate services for the patients who count on us for care.”

According to the release, the sale will be finalized this summer pending regulatory approvals and other conditions in the agreement of sale.

According a report in The Philadelphia Inquirer, Reading Healthcare had $978.5 million in revenue last year with an operating margin of $12.2 million. In its most recent annual report, one of five strategic goals is regional expansion, a goal certainly met, at least in part, by the purchase.

In the release, Reading President and CEO Clint Matthews said the acquisition of Chestnut Hill and the four other hospitals it is purchasing will help the healthcare company meet many of its goals.

“The proposed acquisition will ensure the continued development of acute care and related assets, provider network and capabilities to best serve our region in a cost-effective manner. Integrating our new health plan into the continuum of services offers this expanded region increased access to value-based care and further controls costs for employers and individuals,” Matthews said. “Also, by expanding the scope of our clinical programming through this acquisition, the new system will maximize opportunities to leverage best practices of each organization and further coordinate our brand of high-quality care across the entire system.”

Pete Mazzaccaro can be reached at 215-248-8802 or pete@chestnuthilllocal.com