Tower Health is inching closer to profitability, but Pottstown and Phoenixville hospitals are still in the red, writes John George for the Philadelphia Business Journal.
In the latest financial report for fiscal 2025, Tower’s flagship Reading Hospital posted a robust $176.2 million in operating income through the first nine months. Meanwhile, Pottstown Hospital reported a steep $30.8 million operating loss, and Phoenixville Hospital, in neighboring Chester County, posted a $6.5 million loss.
Still, the combined $37.3 million loss marks a slight improvement from last year’s $40.4 million deficit. Tower Health attributed some of its gains to a one-time $14.7 million boost from a conservative accounting adjustment during the third quarter.
The overall system turned a modest $4.2 million operating income—a major turnaround from the $27 million loss during the same period last year. It’s the closest Tower Health has been to profitability since 2018.
New CEO Michael Stern is steering the health system toward a “unified” approach, with plans to send Reading Hospital specialists to satellite locations like Pottstown and Phoenixville. The goal: stabilize operations and expand access to higher-level care across the Route 422 corridor.
Despite a staggering $122 million operating loss by Tower’s physician network, the system emphasized the importance of those providers in connecting patients to more advanced hospital services.
To learn more about Tower Health’s climb into profitability, visit the Philadelphia Business Journal.
Read about the PA Supreme Court’s controversial ruling on Pottstown Hospital’s tax-exempt status here.
