Tower Health reported an $8.5 million operating profit in the year that ended June 30, compared to a $20.6 million loss the year before.
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The fiscal 2026 profit will be Tower’s first in eight years, if the result holds in its audited financial.
In the Berks County nonprofit’s preliminary financial report to bond investors Friday, Tower management called the result “an important milestone in Tower Health’s ongoing journey toward sustained financial strength.”
Recent moves by Tower to become financially stable included creating a clinical alliance with Jefferson Health, with the goal of bringing more advanced care to Tower’s markets, and laying off 160 workers — or 22% of the workforce — at Pottstown Hospital.
In addition to Pottstown, Tower owns Phoenixville Hospital and Reading Hospital in West Reading, and half of St. Christopher’s Hospital for Children in North Philadelphia in a joint venture with Drexel University.
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Here are more details:
Revenue: Tower reported a 2% increase in revenue, to $2.07 billion from $2.03 billion. Reading Hospital in West Reading logged an 11% increase in revenue, while the combined revenue of Phoenixville and Pottstown Hospitals fell 8%.
Patient volumes: Pottstown saw an 11% decrease in hospital admissions, likely because Tower closed the hospital’s intensive care unit at the beginning of the this year. Phoenixville had a small gain of 0.7% in admissions, while Reading was flat. Total surgeries across the system were flat.
Notable: A year ago, Tower reported a preliminary operating profit of $5.9 million for fiscal 2025, thanks to a gain on the sale of the former Brandywine Hospital. That would have been the system’s first profit in seven years, but it turned into a $20.6 million loss in Tower’s audited financial statements. Auditors from KPMG decided that Tower needed to boost medical malpractice reserves and give up on collecting millions owed by patients.
In an email to The Inquirer, Tower CEO Michael Stern expressed confidence this year’s audit will uphold the preliminary result, giving Tower its first profitable year since 2017.