West Reading, Pa.-based Tower Health reported a $16.6 million operating loss in the first six months of fiscal year 2024, an 81.6% improvement from the $90.1 million loss over the same period last year, according to its Feb. 23 financial report.
Five things to know:
1. Total operating revenue for the six-month period ended Dec. 31 was $956.1 million, a 1.9% increase from the same period in 2023.
2. Operating expenses were $963 million, a 6.3% decrease from the same period last year.
3. The system posted a $21 million net loss, a major improvement from an $81.2 million loss during the same period in 2023.
4. Tower Health was reimbursed $19.5 million as part of the CMS settlement for 340B underpayments from 2018 to 2022.
5. Tower Health is continuing to work on its Tower Together Performance Improvement plan, which was started in fiscal year 2022 in an effort to focus on initiatives to either reduce expenses or increase revenue. The plan resulted in $205 million in organizational benefit in fiscal year 2023, and has budgeted an additional $87.5 million for fiscal year 2024 benefit.