Financially troubled Tower Health, the owner of Pottstown hospitals, along with Brandywine, Jennersville, and Phoenixville hospitals, has decided to withdraw from the market and is instead pursuing a strategic alliance with Penn Medicine, writes John George for the Philadelphia Business Journal.

The health system’s board has signed a non-binding letter of intent to start developing an “alignment model” with Penn Medicine.

Tower Health emphasized it is not being acquired by Penn Medicine and will continue to function as an independent organization as it proceeds with its efforts to improve both its clinical and financial operations.

According to the letter of intent, the two health systems will establish an affiliation steering committee that will have equal representation from both organizations.

Within approximately six months, the committee will evaluate potential collaborations areas.

The aim is to jointly develop “innovative programs and initiatives that provide exceptional care and a high-quality patient experience.”

“Penn Medicine is one of the premier health care systems in the country, embodying all of the key attributes we were looking for in a strategic affiliation,” said Tom Work, chairman of Tower Health’s board of directors. “We are excited to work together to finalize the terms of our alliance.”

Read more about Tower Health in the Philadelphia Business Journal.