As part of an ongoing turnaround effort, West Reading, Pa.-based Tower Health wrote off $370 million in losses on the value of its facilities, according to The Philadelphia Business Journal.
Nine details:
1. The write-offs were disclosed in Tower Health's fiscal year 2021 financial results, which were posted Oct. 27.
2. The $370 million in write-offs, included a $206 million write-off for goodwill and $154 million for the declining value of assets.
3. The write-offs on value were triggered by Tower's attempts to sell all or parts of the system, according to the Reading Eagle.
4. Tower Health told the Philadelphia Inquirer that the write-down "does not impact cash on hand or our ability to meet any financial obligations."
5. Tower reported a $445.7 million operating loss in fiscal 2021, which ended June 30. This is slightly up from the $436.9 million operating loss in fiscal 2020, according to the Business Journal.
6. Tower Health also said in its financial report it has begun preparing for the closure of Jennersville Hospital in West Grove, Pa.
7. Tower Health is also working to finalize an agreement to sell Chestnut Hill Hospital in Philadelphia and more than a dozen urgent care centers to Trinity Health Mid-Atlantic.
8. Tower Health is also continuing to evaluate options including the ownership of Brandywine Hospital in Coatesville, Pa., and St. Christopher's Hospital for Children in Philadelphia, which it has a 50 percent stake in.
9. Tower Health said its results show that its strategic turnaround plan is beginning to work. The health system saw an operating income in the fourth quarter of fiscal 2021.