West Reading, Pa.-based Tower Health recorded an operating income of $8.5 million (0.4% margin) in fiscal 2026, a $29.1 million swing from an operating loss of $20.6 million (-1% margin) in 2025, according to its Aug. 14 financial report.
Tower Health recorded total operating revenue of $2.1 billion for the 12 months ended June 30, up from $2 billion during the same period last year. Net patient service revenue totaled $1.77 billion, down from $1.79 billion. Other operating income totaled $300.9 million, up from $239.8 million.
Total operating expenses were $2.1 billion in fiscal 2026, up from $2 billion in 2025. Salaries and benefits declined slightly to $1.01 billion from $1.02 billion. Supply expenses totaled $452.8 million, up from $413 million. Purchased services totaled $264.8 million, down from $271.7 million.
Operating cash flow rose to $144.1 million (6.9%) in fiscal 2026 from $110.6 million (5.5%) in 2025.
Tower Health said that it took “decisive actions” in fiscal 2026 to strengthen its “foundation and position the organization for long-term success.”
“Through the thoughtful realignment of leadership structures and corporate resources, Tower Health has streamlined decision-making, increased organizational accountability, and enhanced its ability to respond quickly to a rapidly evolving healthcare environment,” the system said in the report.
Tower Health said it continues to evaluate services across its hospitals and ambulatory sites to “better align care delivery with changing consumer expectations and community needs.”
“These efforts are not simply cost-reduction measures; they represent strategic investments in the future of healthcare delivery,” the system said.
Tower Health reported net income of $16.2 million in fiscal 2026, down from $54.9 million in 2025.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
