Tower Health to close 1 hospital, sell another

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As part of a financial stabilization plan announced Sept. 28, Tower Health said it plans to close Jennersville Hospital in West Grove, Pa., and sell Chestnut Hill Hospital in Philadelphia.

The West Reading, Pa.-based health system said it will close Jennersville Hospital Jan. 1. Tower Health said Jennersville Hospital and its emergency department will remain open and will serve patients until the closing date.

Tower Health said it will work with affected employees to offer them other suitable jobs within the health system or offer them priority consideration to join Penn Medicine in Philadelphia. 

In addition to closing the hospital, Tower Health signed a letter of intent to sell Chestnut Hill Hospital and more than a dozen urgent care centers to Trinity Health Mid-Atlantic.

Tower Health said the moves come after months of thoughtful exploration and analysis, and the actions will strengthen and reshape the health system for decades. 

"While we have made considerable progress and are in a stronger financial and operational position than we were last year, we must make additional tough decisions that will firmly establish our health system for decades to come," said P. Sue Perrotty, president and CEO of Tower Health. "With these changes, we are beginning a new chapter for Tower Health, one that reduces uncertainty about our future."

Tower Health also said it is working to evaluate options other than a closure for Coatesville, Pa.-based Brandywine Hospital.

Tower Health has been working on a plan to help stabilize its finances since 2020. In fiscal year 2020, the system had operating losses of more than $415 million.

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