Tower Health is just not having a good year. According to the Philadelphia Business Journal, Tower Health, which lost $65.6 million in fiscal 2022 and is carrying approximately $1 billion in debt, has been attempting to shed some of its assets as part of its ongoing turnaround efforts. It’s had to sell three hospitals this year already, and now it might divest another three.
Stonebridge Healthcare, a hospital turnaround firm, has offered $675 million to purchase Reading Hospital, Phoenixville Hospital and Pottstown Hospital, all in Pennsylvania and owned by Tower Health. The deal is set to expire on December 9th, 2022, so we’ll have to wait until then for a final announcement.
Under its proposal, Stonebridge would commit to hiring substantially all of Tower Health’s hospital employees at pay levels “reasonably consistent” with rates paid by Tower.
According to more reporting by the Philadelphia Business Journal, this isn’t the first time Stonebridge Healthcare has tried to purchase hospitals from Tower Health (or Tower Health itself). Stonebridge, working in a partnership with Lehigh Valley Health Network, last year made two conditional offers — which were not accepted — to acquire all of Tower Health’s assets for $600 million.
With increasing headwinds in the hospital market, maybe Tower Health will reconsider. If the deal closes, we’ll provide an update on LevinPro HC.
