Listen to article \u2022\u00a00:00 min<\/p>\n
Tower Health and Jefferson Health<\/a> announced Friday that they have formed a clinical affiliation that would expand access to advanced treatments in Tower\u2019s markets northwest of Philadelphia.<\/p>\n The two nonprofit organizations said Jefferson is not acquiring Tower, which is the biggest healthcare provider in Berks County and also owns two hospitals in Chester and Montgomery Counties. <\/p>\n \u201cHealthcare organizations today face unprecedented challenges, including inadequate reimbursement, rising costs, workforce shortages, and increasing competition,\u201d Tower\u2019s CEO Michael Stern said in an announcement to employees.<\/p>\n \u201cHistory teaches us that when an organization is confronted by challenges on multiple fronts, success depends on finding the right ally \u2014 one that shares our values, respects our strengths, and is committed to the same mission,\u201d Stern\u2019s note said.<\/p>\n Jefferson said it routinely works with other health systems to provide high-level specialty care throughout the region it serves. <\/p>\n \u201cAs part of that commitment, we are working with Tower Health to enhance access to advanced tertiary and quaternary services, bringing more specialized expertise, innovative treatment options, and coordinated care closer to the communities we serve,\u201d Jefferson said.<\/p>\n Details of the arrangement with Tower will worked out in the next few months.<\/p>\n Jefferson is also among the Philadelphia-area health systems exploring a clinical alliance<\/a> to support financially struggling St. Christopher\u2019s Hospital for Children, which Tower manages and owns in a 50-50 joint venture with Drexel University<\/a>.<\/p>\n Turnabout for Tower<\/p>\n For Tower Health, the potential collaboration with Jefferson represents a turnabout from a decade ago when the system based in West Reading plotted a move into the Philadelphia market<\/a>. Tower spent $423 million for the acquisition of five community hospitals in Southeastern Pennsylvania from Community Health Systems Inc. in 2017.<\/p>\n The idea then was that the health system\u2019s anchor, Reading Hospital, would draw patients for the most advanced care to Berks County from the Philadelphia region. That deal led to massive losses<\/a> as the anticipated patients didn\u2019t materialize in Reading and then COVID-19 crushed health system finances nationwide.<\/p>\n Tower sold or closed three of the five acquired hospitals, but remains saddled with a huge debt load. The interest payments leave the system with little money left over to invest in the new facilities and services. Last year, Tower instituted significant service cuts<\/a> and layoffs at Pottstown Hospital.<\/p>\n