When Michael Stern joined West Reading, Pa.-based Tower Health in 2022 as executive vice president and COO, the organization was already in the midst of a financial turnaround, led by then-interim CEO Sue Perrotty, a 30-year veteran of the banking industry.
As part of the turnaround, the organization appointed several new leaders in recent years. The capstone to this effort is the appointment of Mr. Stern, who served as president and COO since April 2024, to president and CEO, effective Feb. 24.
Ms. Perrotty, who played a key role in rebuilding the health system after a $440 million loss, will transition back to the board of directors.
In conversation with Becker's, Mr. Stern discussed his focus on financial sustainability, the system's pending three-year strategic plan and its "Tower Experience" initiative.
The initiative aims to improve the experience of everyone who interacts within the system, including employees, patients and vendors. Inspired in part by the book If Disney Ran Your Hospital by Fred Lee, the initiative emphasizes a culture of genuine engagement and, as Mr. Stern puts it, "bring[ing] the fun back into the organization." It also aligns with another pillar in Tower Health's strategic plan: "Leading with Humanity in the Workforce."
"People normally think of doctors and nurses, but the first person you talk to and how that encounter goes impacts your experience," said Mr. Stern. "And on the back end, if you have a billing issue or something like that, that impacts your experience. So we're looking at it as an all-encompassing opportunity."
To support this experience-centered approach, Tower Health has introduced regular leadership rounding, "secret shoppers," and pulse surveys.
"We round a lot in our [facilities] to really be out there," Mr. Stern said.
Tower Health also uses "secret shoppers" to assess experience and quick, two-minute pulse surveys to identify continuous or one-off issues needing improvement.
On financial sustainability, Mr. Stern stressed "acting as one" rather than rapid expansion. "Our strength lies in making the whole greater than the sum of its collective parts," he said. "Embracing Tower Health as a system and using our collective resources will help our financial performance."
Additional key priorities include:
- Workforce stability and high-quality care delivery.
- Encouraging leaders to "own" their areas like CEOs.
- Meeting the needs of behavioral health patients in appropriate settings.
- Advancing a care continuum for women's health.
Meanwhile, Tower Health is actively recruiting a new CFO as current executive vice president and CFO Mike Eesley prepares to exit. Mr. Eesley, who joined Tower Health in 2021 after retiring from Chicago-based Northwestern Medicine, will stay through the recruitment process and potentially longer. Tower Health expects to narrow the list of candidates in February.