Tower Health, the owner of Pottstown and Phoenixville hospitals, reported $27.4 million in operating losses for the first nine months of fiscal 2024, which is significantly lower than the $122.8 million loss for the same period a year ago, writes Harold Brubaker for The Philadelphia Inquirer.

“Throughout fiscal year 2024, we have met or exceeded our financial and growth goals, and we are confident we will achieve our projected return to profitability by the fiscal year end,” said the Berks County-based nonprofit health system.

However, Tower’s cash reserves continued to decline, reaching the equivalent of 30 days of operating expenses on March 31, compared to 32 days at the end of the year.

This low level of reserves has caused Standard & Poor to downgrade the health system’s credit rating this week by one notch to CCC.

Tower’s overall revenue for the nine months that ended March 31 was $1.43 billion, up 2.6 percent from last year.

Phoenixville and Pottstown hospitals recorded a revenue increase of 7.2 percent to $250.9 million. Operating income remained roughly the same at around $40 million in both years.

Read more about Tower Health and its operating loss in The Philadelphia Inquirer.

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