As part of a financial turnaround plan, Tower Health will consider selling all six of its Philadelphia-area hospitals, according to The Philadelphia Inquirer.
The West Reading, Pa.-based health system has faced a growing debt load and significant financial losses in the last two fiscal years. In the fiscal year ended June 30, Tower Health recorded an operating loss of $442 million. It also saw an operating deficit of $178.8 million the year prior.
Since 2017, Tower Health has purchased six Philadelphia-area hospitals. Five of the hospitals were from Franklin, Tenn.-based Community Health Systems. The other, St. Christopher's Hospital for Children, was purchased in partnership with Drexel University in Philadelphia.
In a conference call with investors Nov. 10, Tower Health officials said they were evaluating all options to improve the organization's balance sheet and competitive position.
"We as a board will consider any and all strategic options" with "a very strong preference, if not an obsession, to preserve the mothership, Reading Hospital," Tower Health Chair Tom Work told investors, according to the Inquirer.
Tower Health expects to present any potential transactions by the end of the year, according to The Philadelphia Business Journal.
The conference call with investors comes about two weeks after S&P Global Ratings lowered Tower Health's long-term rating three notches due to its deteriorating finances in fiscal year 2020.
Tower Health has tapped financial consultant Guidehouse to help with its financial recovery plan.