News Release: Hammond Hanlon Camp LLC Advises Tower Health on its Acquisition of 5 Pennsylvania-based Hospitals from Community Health Systems

posted on June 6, 2018

NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the financial advisor to Reading Health System (the “System” or the “Company”), now known as Tower Health, on its acquisition of five hospitals from Franklin, Tenn.-based Community Health Systems. Headquartered in Reading, Pa., the Company is a 714-bed, state-of-the-art health system serving southeastern Pennsylvania-based Community Health Systems.

Community Health System was in the process of selling dozens of its hospitals and had decided to sell five hospitals located in a service area targeted by the System for growth. The acquisition was transformational as it enabled the System to grow from a one-hospital system to a six-hospital regional provider. It also allowed for the continued development of acute care and related assets and provider network capabilities to serve the region in a cost-effective manner.

“The H2C team created value for us by negotiating significant improvements in the final terms of the acquisition, including the initial purchase price,” said Clint Matthews, CEO of Tower Health.

The five facilities are Brandywine Hospital in Coatesville; Chestnut Hill Hospital in Philadelphia; Jennersville Hospital in West Grove; Phoenixville Hospital in Phoenixville; and Pottstown Hospital in Pottstown. The System engaged H2C as a buy-side advisor to help structure and negotiate a proposal for the acquisition of the five hospitals. H2C led the transaction, which involved the acquisition, due diligence, bridge loan and permanent financing processes.

The System completed the acquisition of the hospitals on Oct. 1, 2017, and the post-acquisition integrated healthcare system was rebranded as Tower Health (“Tower”).

“H2C was pleased to assist Tower Health in emerging as the successful bidder for the five hospitals and to serve as its Financial Advisor on both the interim and permanent financings,” said Michael Hammond, Principal at H2C.

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