Tower Health Plans to Layoff 900, Leave 100 More Jobs Unfilled
POTTSTOWN PA – Regional healthcare non-profit Tower Health will reduce its workforce by about 900 positions and leave another 100 positions unfilled in reaction to an overall loss of $212 million in revenue through the end of May, attributable to the coronavirus pandemic, it said Tuesday (June 16, 2020) in a media release.
As part of the layoffs, Tower reported it will:
- Close the maternity unit at Pottstown Hospital (at top);
- Close or consolidate some services at its Reading Birth Center, as well as behavioral health services at Reading Hospital and its occupational medicine and sports medicine programs there; and
- Close two physicians’ practices: Coventry Foot and Ankle Surgery at 296 W. Ridge Pike, Royersford, and Premier Women’s Health, 495 W. Ridge Pike, Royersford.
Those left unemployed “will receive severance packages, support with job placement both within and outside the system, and other services,” Tower said.
The release did not mention any new cuts in jobs or services at Phoenixville Hospital, or its physician practices in the Phoenixville area.
In a memo to employees and medical staff Tower Health President and CEO Clint Matthews claimed “the government-mandated closure of many outpatient facilities and the suspension of elective procedures caused a 40-percent drop in system revenue.” At the same time, he added, Tower increased spending “for personal protective equipment, staff support, and COVID-related equipment needs.”
Tower also plans to step up what it calls its “Transformational Excellence Program to identify cost savings and performance improvement, while moving toward a more centralized and streamlined model for Tower Health management that will support greater efficiency and faster decision-making.” Its goal is $230 million in savings over the next two years.
The organization also indicated “potential additional future actions may be taken” as it monitors how patients seek out healthcare services in the future as a result of the pandemic. It intends to “evaluate all Tower Health assets, operations, and services for future sustainability,” the company said.
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