Tower Health will implement temporary salary cuts of 10 percent or 15 percent for its executives and managers, including those at Pottstown Hospital and Chestnut Hill Hospital, as COVID-19 losses continue to mount, writes Harold Brubaker for The Philadelphia Inquirer.
The move will save the nonprofit system around $11.6 million through June.
The move comes after Tower reported a massive operating loss of $439 million for the year ended June 30, 2020.
“We have not taken this action lightly,” said chief executive Clint Matthews. “Our board and leadership are focused on a thoughtful and deliberate process to chart the right path forward for Tower Health.”
Tower was hit harder by the COVID-19 outbreak than some of its competitors because the system incurred costs and lost revenue from the pandemic but did not have a large number of COVID-19 patients at most of its seven hospitals.
Tower was already on a shaky financial footing even before the pandemic as it struggled with the integration of the five community hospitals it bought in 2017 for $423 million. These included Pottstown Hospital and Chestnut Hill Hospital.
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