A retired attorney is pitching a plan to save three hospitals owned by Tower Health, a cash-strapped hospital system based in West Reading, Pa., according to The Mercury.
The attorney, Barton Post, said he is working with the Chester County Medical Society and the Pennsylvania Medical Society to develop a model that would incorporate new services into the hospitals under a nonprofit umbrella. The services being pitched are child care, elder care and wellness programs. Mr. Post argues the services could improve the finances of the three hospitals.
"If these hospitals close or staffing is reduced what would happen would be catastrophic for the communities they serve," Mr. Post told The Mercury. "We would want to get the creditors and bondholders involved in these discussions because they can put pressure on Tower. As it stands now, bond holders and creditors have not taken a public stand in trying to save these hospitals."
Mr. Post also said that bond holders and creditors should get publicly involved to help save the hospitals and their investments.
The news comes a few days after Tower Health announced it would restructure and consolidate its medical group to improve its finances. The move will affect about 200 physicians and staff.
Tower Health has been looking for a "like-minded" suitor to purchase the health system and help it improve its finances for months. Tower Health's operating losses have neared $600 million. Tower Health was also hit with a three-notch credit downgrade by Fitch Ratings in March, reflecting significant ongoing financial losses from the COVID-19 pandemic and operational challenges following the 2017 acquisition of five hospitals.