Tower Health, the owner of Pottstown Hospital, has rejected a $706 million offer from a recently formed nonprofit affiliated with StoneBridge Health, writes John George for the Philadelphia Business Journal.
Woodbridge put forth the bid last month to acquire the Berks County-based health system for $550 million in cash along with the assumption of finance leases with liabilities of $156 million.
According to Joshua Nemzoff, founder and CEO of StoneBridge, a hospital turnaround company, his company would have negotiated a management agreement with the nonprofit organization to operate the hospitals currently owned by Tower Health.
“The management team at Tower Health has painted a glowing report of progress every quarter for over two years,” said Nemzoff. “Unfortunately for them and the board, during that period, Tower Health has lost $400 million from operations. They now have $154 million of cash left and $1.5 billion of debt.”
This is the fourth time Nemzoff attempted to buy Tower Health since 2021.
Read more about why Tower Health rejected a $706 million offer from a nonprofit affiliated with StoneBridge Health in the Philadelphia Business Journal.
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