Two Tower Hospitals Being Sold to Become For-Profit
Tower Health’s flagship Reading Hospital, at top, and corporate CEO P. Sue Perotty
WEST READING PA – Canyon Atlantic Healthcare, the company that proposes to buy Brandywine and Jennersville hospitals from Tower Health, would convert both to for-profit medical centers that “will pay taxes and put money back in the community,” its chief executive officer said in a story published Wednesday (Nov. 24, 2021) by the Philadelphia Business Journal.
The current non-profit status of the two hospitals and others – including those in Pottstown and Phoenixville – acquired by Tower during 2017 from Tennessee-based Community Health Systems Inc. has been a continuing bone of contention among municipalities and school districts where they are located. The promised return of tax payments by Canyon Atlantic would be news welcomed by the taxing entities affected.
No sale or other plans have been announced for either Pottstown or Phoenixville hospitals. Both lost money during the past year, according to Tower Health financial data.
The Journal story by Senior Reporter John George also noted that Canyon Atlantic’s chief financial officer, Michael Zwetschkenbaum, earlier worked as CFO of Pottstown Hospital during its ownership by Community Health.
Brandywine and Jennersville hospitals, both in Chester County, would represent the first hospitals owned by Canyon Atlantic. Company CEO David Kreye told the Journal they would serve as a “cornerstone” of its future. The company’s senior leadership team, including Zwetschkenbaum, has more than 150 combined years of experience in working with financially distressed hospitals, Kreye added.
Photos provided by Tower Health