Tower Health Foresees Changes to Medical Group

WEST READING PA – To trim $70 million from expenses by June 30, Tower Health may close some medical practices, consolidate others to reduce office and equipment costs, “transition” an unspecified number of physicians and providers to other employers or into independent practices, and “adjust” some providers’ compensation, the Philadelphia Business Journal reported Monday (May 10, 2021).

The proposed new round of “financial performance improvements,” as executives described them, are seen as a “reconfiguration” of the Tower Health Medical Group, Journal senior reporter John George wrote. It’s a network of hundreds of primary care and specialty physicians, and advanced practice providers, who deal directly with patients. If appropriate, they also refer patients to other Tower specialists.

The changes, announced in a memo issued by Tower Health interim president and CEO Sue Perrotty, are contemplated to occur within 51 days. Information on who, how many, or what may be closed, consolidated, shifted, or see incomes revised was not immediately clear, George’s article noted. About 95 providers and 100 support staff members could be affected, he reported, but there was no mention of which of the medical group’s 134 practice sites might be shuttered or merged.

An article in the Reading Eagle newspaper, written by reporter Lisa Scheid, cited a company spokesperson as saying “the restructuring will touch the whole system, including doctors’ practices” in Montgomery, Berks, and Chester counties. If so, patient referrals for services to Tower Health-owned hospitals in Pottstown, Phoenixville, and four other Philadelphia regional locations might also be impacted.

Tower Health has yet to report on which, if any, bids it sought in April for the sale of its system, in whole or part, have either been accepted or are being actively considered.

Photo of Reading Hospital by Tower Health