Tower Health, a seven-hospital system based in West Reading, Pa., saw its operating loss grow in the first nine months of fiscal year 2021 and is working to review proposals from potential buyers, according to recently released financial documents.
Through the first nine months of fiscal 2021, Tower Health's operating loss reached $228.4 million. In the same nine-month period one year prior, Tower Health recorded an operating loss of $132 million.
Taking into account COVID-19 relief funding, Tower Health saw its revenue grow to $1.6 billion in the nine-months ended March 31, up 3.6 percent from the same period one year prior.
The health system's expenses also grew in the nine-month period of fiscal year 2021 to $1.9 billion. In the same period last year, Tower Health's expenses reached $1.7 billion.
After factoring in nonoperating gains of $67.6 million, Tower Health ended the first nine months of fiscal 2021 with a net loss of $131.6 million. In the same period in fiscal 2020, Tower Health recorded a net loss of $142.1 million.
Tower Health has been looking for a "like-minded" suitor to purchase it and help improve its finances. In the financial report, Tower Health said it received multiple indications of interest from potential buyers and is working to review the proposals by mid-July.
Tower Health was 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.