Phoenixville Hospital in Chester County was the University of Pennsylvania Health System's last hospital outside of Philadelphia -- until it was sold for over $100 million.
The 143-bed Phoenixville Hospital -- which had received about $50 million in improvements from UPHS -- now belongs to Tennessee-based private health care company Community Health Systems.
Although Phoenixville had operated profitably during the seven years under UPHS ownership, it required an increasing level of financial commitment better met through private ownership, UPHS CEO Ralph Muller said.
"CHS is committing $100 million to building up Phoenixville," Muller said.
The August sale has resulted in two positive outcomes for UPHS, according to Muller.
"It allowed us to concentrate our resources more on our downtown hospitals. And secondly, in terms of our long term financial health, we've improved dramatically," Muller said.
Recent UPHS actions, including the Phoenixville sale, have led to a rating boost from "stable" to "positive" from Moody's Investors Service -- a group that provides credit ratings and financial services.
"We now have the financial strength to keep expanding existing programs," Muller added.
Muller hopes to reverse the condition of overcrowded facilities in the three remaining UPHS hospitals with substantial expansion in the cardiology, neurosurgery and orthopedic units.
Muller also cited an ongoing clinical affiliation with CHS as part of an initiative to extend UPHS medical services into a broader geographic area.
"We continue to provide a good share of medical services in Phoenixville, as well as other CHS-owned hospitals in the broader Philadelphia area," Muller said.
According to Muller, Phoenix-ville Hospital's increase in capital does not come at the expense of patient care.
CHS oversees daily hospital operations and finances, said Stephen Tullman, the new chief executive officer of Phoenixville Hospital.
However, according to Tullman, the switch from non-profit to for-profit operation that accompanied the sale has not significantly altered the hospital's patient care.
"The primary purpose is to take care of patients. The relationship with UPHS adds tremendous value to the hospital and local community," Tullman said.
CHS plans renovation and expansion for Phoenixville Hospital, pending the approval of the town council.
"We are currently in discussion with UPHS Department of Surgery to add a surgical oncology unit to the hospital," Tullman said, adding that Phoenixville also hopes to expand its cardiac surgery program directed under UPHS.
