Court ruling reverses Pennsylvania hospital's nonprofit status

Pottstown (Pa.) Hospital is back on the tax rolls after the Pennsylvania Commonwealth Court reversed its nonprofit status, The Mercury reported Feb. 19.

The hospital, which is part of West Reading, Pa.-based Tower Health, gained nonprofit certification from Montgomery County Court in 2021, the report said. If the decision is upheld, Pottstown School District would gain at least $900,000 annually in additional tax revenue.

The decision stems from former Tower Health CEO's Clint Matthews' "eye-popping" compensation package. Since 40 percent of his pay depended on financial results, Tower Health didn't meet the criteria for being considered a nonprofit, the report said.

The hospital has yet to appeal the decision.

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