Tower to Pursue ‘Strategic Alliance’ with Penn Med
WEST READING PA – Rather than pursue a merger or sale of its assets, financially struggling Tower Health – owner of Pottstown and Phoenixville hospitals, local urgent care centers, and several local medical practices – said Friday (July 30, 2021) it would develop “a strategic alliance” with Philadelphia-based Penn Medicine, while separately continuing work “to improve its clinical and financial operations.”
Tower said it signed “a non-binding letter of intent” with Penn to begin a six-month process that could determine “potential areas of collaboration.” During that period, Tower Health added, it won’t comment further on its progress. “It is important to emphasize that a strategic alliance is not a merger,” the company said, and added it “is not being purchased by Penn Medicine.”
Instead the two entities said they hope to focus on “joint development” of programs and initiatives. Tower Health also claimed operational improvements have helped its financial turn-around since March (2021), and its patient volumes have returned to pre-pandemic levels.
Penn Medicine consists of the University of Pennsylvania Health System and at the Perelman School of Medicine at the University of Pennsylvania.
“Both Penn Medicine and Tower are committed to providing the very best care for patients in the regions we serve together,” University of Pennsylvania Health System CEO Kevin B. Mahoney said. “Forming a stronger alliance would allow us to work together to develop new approaches for delivering superior, cost effective and accessible patient care in our local communities.”
Photo by Tower Health