Casey pushes Scranton-area hospital owner to ensure care remains accessible

WILKES-BARRE — U.S. Sen. Bob Casey on Friday said Community Health Services has “repeatedly forgone efforts to invest in their Pennsylvania facilities and risked the quality and accessibility of care for Pennsylvanians in the pursuit of profit for their shareholders and executives.”

In a letter to Community Health Systems, Casey, D-Scranton, expressed concerns about the company’s business practices amidst efforts to sell the Scranton hospitals.

The company owns Moses Taylor Hospital and Regional Hospital in Scranton and Wilkes-Barre General Hospital in Wilkes-Barre.

“It is CHS’ responsibility to find a trustworthy buyer who has a strong record and experience in running hospitals in order to provide a pathway to safe, affordable, and accessible care for their patients and to the Northeastern Pennsylvania community,” Casey said. “It is (the company’s) responsibility to find a trustworthy buyer who has a strong record and experience in running hospitals in order to provide a pathway to safe, affordable, and accessible care for their patients and to the Northeastern Pennsylvania community.”

Casey, Chairman of the U.S. Senate Special Committee on Aging, said he has repeatedly fought to keep hospitals open and ensure that Pennsylvanians have reliable access to health care.

Last year, Casey led the charge to prevent funding cuts to rural hospitals across the country. He also introduced Rural Hospital Support Act, which seeks to permanently extend two key Medicare rural hospital programs and establish a new re-basing year – preventing closures that would disrupt access to care for individuals in rural communities.

CHS issues response

Tomi Galin, EVP, Corporate Communications and Marketing for Community Health Systems in Franklin, Tennessee, issued the following statement in response to Sen. Casey’s letter:

“We are proud of our Commonwealth Health hospitals’ track record of delivering safe, quality care in their communities and have been working diligently with numerous state officials over the last year to identify a sustainable path forward for these hospitals.

“We were surprised to receive Chairman Casey’s letter only yesterday, especially since neither he or his office previously reached out to us directly to voice these concerns.

“We look forward to sharing with his office all of the work that we have done to try to make these hospitals sustainable in the short term and for the future.”

Casey set the letter to Tim L. Hingtgen, Chief Executive Officer/Community Health Systems.

The letter

In the letter, Casey said:

• CHS claims that they “help people get well and live healthier by providing safe, quality healthcare, building enduring relationships with our patients, and providing value for the people and communities we serve.” However, during the COVID-19 pandemic, CHS sued approximately 19,000 patients for unpaid medical bills.

• In 2020, while CHS was suing patients during a global pandemic that had dire economic effects, they made $511 million in net income and provided their then-CEO $7.8 million in compensation. These earnings and compensation packages were buoyed by taxpayer dollars. CHS received nearly $250 million in grants through the Coronavirus Aid, Relief, and Economic Security (CARES) Act and received over $1 billion in Medicare accelerated payments.

• Over the course of its ownership of hospitals in Pennsylvania, CHS has been described as “the troubled hospital operator” and “trying to get its head above water,” with a 2017 article stating “CHS is struggling, having lost $1.7 billion in 2016.” CHS’s operation of hospitals has resulted in specialists leaving Scranton hospitals and left Moses Taylor Hospital without an emergency department.

• Amid rumors about planned sales of the hospitals, my staff attended a meeting last month between CHS leadership, community stakeholders, and elected officials regarding CHS’ plans for Regional Hospital and Moses Taylor Hospital. At this meeting, CHS leadership expressed that both facilities had been experiencing negative cash flow and that CHS was looking to sell both hospitals. The company executives shared plans to close one or both hospitals if they are unable to find a buyer in the next few months.

Casey wrote:

“I worry that CHS’ focus on turning profits has and will continue to result in limited access to health care for my constituents in Pennsylvania. It is CHS’ responsibility to find a trustworthy buyer who has a strong record and experience in running hospitals in order to provide a pathway to safe, affordable, and accessible care for their patients and to the Northeastern Pennsylvania community.

“To that end, I ask that CHS provide regular updates to me and my staff on any anticipated changes in care at or ownership of its Pennsylvania hospitals.”