West Reading, Pa. – Tower Health and Drexel University have entered into an agreement to acquire St. Christopher’s Hospital for Children for $50 million, ensuring that the health care provider will continue its role as a vital resource for families in North Philadelphia and the region following its sale in bankruptcy court.
“Tower Health and Drexel are committed to the North Philadelphia community – including the more than 30,000 children who depend on the hospital for their primary care and the 70,000 children served annually by the hospital’s emergency department – as well as its growing network of primary and specialty care locations throughout the Philadelphia suburbs and New Jersey,” said Clint Matthews, president and CEO of Tower Health.
The sale of St. Christopher’s to Tower and Drexel must be approved by the U.S Bankruptcy Court for the District of Delaware as part of the process to resolve the Chapter 11 bankruptcy filed by American Academic Health Systems LLC, of which Center City Healthcare – the owner and operator of St. Christopher’s – is a subsidiary.
In their proposal, officials from Tower and Drexel affirmed their commitment to keeping the hospital intact, while providing operational expertise and financial security to strengthen the venerable institution that has been a fixture in North Philadelphia for 144 years.
Tower Health will take the lead operationally and work to preserve St. Christopher’s legacy of providing quality health care for families and nationally recognized programs for children.
In addition to serving as a critical resource for the care of children in underserved neighborhoods, St. Christopher’s is also an important part of medical student education for the Drexel University College of Medicine.
“St. Christopher’s and Drexel’s College of Medicine have had a long-standing and successful academic affiliation for pediatric clinical education,” said Drexel President John Fry. “It has served as an important training site for more than 20 years for Drexel’s third- and fourth-year medical students and their hospital-based clinical rotations in pediatrics.”
Tower Health and Drexel will assume operations of St. Christopher’s Hospital prior to the end of the year. The new owners vowed a seamless transition with St. Christopher’s existing partners.