Lahaska-based WoodBridge Healthcare’s deal to acquire three hospitals in Northeastern Pennsylvania for $120 million has fallen through, writes John George for the Philadelphia Business Journal.

The turnaround firm had reached a tentative agreement to acquire Commonwealth Health, the operator of the three hospitals, from subsidiaries of Tennessee-based Community Health Systems in July. However, the deal — which would have been its first acquisition — was terminated after the Bucks County nonprofit failed to secure funding.

WoodBridge had hired investment banking firm Zeigler to arrange financing for the acquisition through the issuance of tax-exempt bonds, but the bond sale ultimately fell through. The firm did not say why the bond sale had not been executed.

The deal included Wilkes-Barre General Hospital in Wilkes-Barre, Regional Hospital of Scranton, and Moses Taylor Hospital in Scranton.

“The entire WoodBridge team is extremely disappointed in this outcome,” said Joshua Nemzoff, Woodbridge’s chairman. “We very much looked forward to being part of the Scranton and Wilkes-Barre communities and partnering with the Commonwealth Health staff and physicians on providing the best health care in the region.”

WoodBridge, which was founded earlier this year, will now continue the search for its first acquisition.

Read more about WoodBridge Healthcare in the Philadelphia Business Journal.

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