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Tower Health on Friday announced the closure of three programs at Pottstown Hospital: the McGlinn Cancer Institute, the endoscopy program and the intensive care unit. (MediaNews Group file photo)<\/p>\nFacing continued financial pressures that have plagued health networks across the U.S. for years, Tower Health \u2014 the health system that includes Reading Hospital \u2014 has announced it will be laying off 350 employees.<\/p>\n
The impacted employees were notified Friday.<\/p>\n
The largest portion of the job losses \u2014 a total of 131 \u2014 will be the result of the closure of three programs at Pottstown Hospital: the McGlinn Cancer Institute, the endoscopy program and the intensive care unit.<\/p>\n
Tower Health on Friday announced the closure of three programs at Pottstown Hospital: the McGlinn Cancer Institute, the endoscopy program and the intensive care unit. (MediaNews Group file photo)<\/p>\n
Health system officials said the majority of the other layoffs are at the executive and administrative level. Further details on those cuts were not immediately available.<\/p>\n
Hospital officials said the layoffs will not impact any employees at St. Christopher\u2019s Hospital for Children in Philadelphia, which is operated in partnership with Drexel University.<\/p>\n
\u201cIn the face of the major headwinds confronting every health system nationwide, we have taken important steps to transform our operations and build a more nimble and resilient organization,\u201d a statement from Tower Health read. \u201cThese difficult decisions were not made lightly. They were made out of necessity to ensure that we can chart our own pathway forward and continue serving our communities.<\/p>\n
\u201cOur commitment to award-winning, high-quality care and patient safety remains unwavering.\u201d<\/p>\n
The layoffs will impact about 3% of Tower Health\u2019s total workforce. Health system officials said they are being done to help ensure the system can continue to offer high-quality care to patients.<\/p>\n
\u201cThese changes are not simply about reducing costs,\u201d the Tower Health statement read. \u201cThey reflect a strategic priority to reinvest savings in the pillars that power our future. That includes expanding our provider network, accelerating innovation through artificial intelligence and technology adoption and enhancing the overall patient experience.\u201d<\/p>\n
The decision to cut programs at Pottstown was made after an examination of the system to determine what programs are no longer sustainable or aligned with how and where patients seek care.<\/p>\n
Pottstown Hospital has been losing money since before the COVID-19 pandemic, health system officials said.<\/p>\n
The programs being cut at Pottstown will remain in operation for at least 60 days, officials said. That will give patients a chance to find care elsewhere, the officials said, noting that similar services are offered at Reading Hospital, Phoenixville Hospital and other nearby health care providers.<\/p>\n
Despite the closure of the cancer center, Pottstown will continue to offer radiation oncology services, officials said.<\/p>\n
In a message sent to employees Friday, Tower Health President and CEO Michael Stern said the system is facing the same challenges that health care providers across the country are facing.<\/p>\n
\u201cAcross the country, health systems are under extraordinary financial pressures and uncertainty,\u201d his message said. \u201cRising supply chain and labor costs, coupled with reimbursement rates that have not kept pace with expenses, are creating significant pressure. At the same time, demographic shifts \u2014 such as a growing Medicare population, more uninsured patients and evolving Medicaid policies \u2014 are adding complexity to the environment in which we provide care.<\/p>\n
\u201cTower Health is not immune to these realities.\u201d<\/p>\n
Stern\u2019s message said the health system has been working diligently to navigate the challenges over the past few years but that continuing on the same path is no longer viable.<\/p>\n
\u201cTo protect our mission and ensure we can continue delivering exceptional care well into the future, we must make thoughtful, forward-looking decisions today,\u201d his message said.<\/p>\n
Stern said Tower remains dedicated to its patients.<\/p>\n
\u201cThis work goes beyond cost management \u2014 it\u2019s about building a stronger, more resilient Tower Health for the future,\u201d his message read. \u201cBy facing today\u2019s challenges directly, we are creating the capacity to invest in what truly matters: supporting and growing our provider teams, harnessing the power of technology and artificial intelligence, enhancing care coordination and improving access and experience for the patients and families who rely on us.\u201d<\/p>\n