Tower Health Accepting Buyer Bids Through April
WEST READING PA – All or parts of Tower Health are being considered for purchase by what so far amounts to a list of more than 10 health care organizations as potential bidders for its units, company interim CEO Sue Perrotty told the Philadelphia Business Journal, it reported Thursday (April 8, 2021) following an exclusive interview.
Perotty declined to name any prospective suitors, but said the West Reading-based healthcare provider that owns Pottstown and Phoenixville hospitals is accepting bid proposals through the end of April. Its key requirement for all of them, Journal Reporter John George wrote, was that the hospitals must “be kept as nonprofit medical centers.”
So far, she said, Tower has received inquiries about individual parts of the system, as well as for the entire company as a whole.
Tower ended its 2020 fiscal year with a $442 million operating deficit, due primarily to drops in revenue and added staffing and equipment costs related to the coronavirus pandemic. The Journal also cited financial “struggles” among hospitals Tower bought in 2017 from Community Health Systems, which included Pottstown and Phoenixville.
Local municipal and other government leaders might be disappointed if the hospitals are sold under conditions demanding their non-profit status must continue. Boroughs’ and school districts’ tax revenues dropped significantly when for-profit Community Health sold the hospitals to non-profit Tower, removing them from the tax rolls.
Photo supplied by Tower Health