In a reversal from earlier this month, two Pennsylvania healthcare organizations have decided to submit a bid to buy the financially struggling West Reading, Pa.-based Tower Health, according to the Philadelphia Business Journal.
Allentown, Pa.-based Lehigh Valley Health Network and Lahaska, Pa.-based StoneBridge Healthcare, a healthcare company that plans to buy acute-care hospitals, changed stances and have now made an offer for Tower Health. Lehigh Valley and StoneBridge teamed up to determine if they could reach a mutually beneficial deal.
Earlier this month, the two organizations told the Business Journal that they had decided not to make an offer. It is unclear what made them change their minds, according to the report.
Tower Health, a seven-hospital system, has been looking for a "like-minded" suitor to purchase it and improve its finances. In its most recent financial report, Tower Health said it received multiple indications of interest from potential buyers and is working to review the proposals by mid-July.
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.