Tower Health
| Formation | September 29, 2017 |
|---|---|
| Headquarters | West Reading, PA |
President & Chief Executive Officer | Michael Stern, FACHE |
| Website | towerhealth.org |
Tower Health is a health system based in West Reading, Pennsylvania.[1] It was created in 2017 when the former Reading Health System acquired five hospitals.[2]
Financial strain
[edit]The 2017 formation of Tower Health represented a significant strategic expansion step by Reading Health System to extend and expand its regional presence and service capabilities.[3] The ambitious effort came with initial fiscal strain, however.[4] The five hospitals acquired by Reading Health System collectively recorded a $17 million operating loss for the June 30, 2017, end of fiscal year, shortly prior to the acquisition being finalized.[5] This underlying fiscal weakness in the acquired firms demonstrates that the strategic choice to proceed with the acquisition was a aggressive step. It suggests that projected long-term benefits such as increased market share and wider geographic reach were given more importance compared to the short-term fiscal well-being of the new companies. This early financial exposure of the newly affiliated hospitals subsequently contributed to a significant part of the dire financial issues and costly expansion Tower Health would encounter in the next years, paving the way for later divestitures and hospital closures.[6]
See also
[edit]References
[edit]- ↑ "About Us". Reading Hospital Tower Health. Retrieved July 27, 2025.
- ↑ Team, Hammer Marketing (October 2, 2017). "Reading Health System Completes Acquisition of Five Hospitals; Tower Health is Formed". BCTV. Retrieved July 27, 2025.
- ↑ "Agreement Signed to Sell Hospitals to Reading Health System". towerhealth.org. Retrieved July 27, 2025.
- ↑ "From having a deal to shutting the doors: Tower Health plans to close two hospitals". OncLive. December 11, 2021. Retrieved July 27, 2025.
- ↑ "Tower Health's recently acquired CHS hospitals saw $17M operating loss in FY 2017". Becker's Hospital Review | Healthcare News & Analysis. October 4, 2017. Retrieved July 28, 2025.
- ↑ "From having a deal to shutting the doors: Tower Health plans to close two hospitals". OncLive. December 11, 2021. Retrieved July 28, 2025.