Troubled Tower Health pledges transparency for investors

West Reading, Pa.-based Tower Health, which has recently reduced its hospital count and laid off a number of employees, has pledged greater transparency with its current bondholders, according to a Jan. 20 filing.

In a recent Consent Solicitation Statement, the healthcare system said it would provide a monthly financial package, host investor calls each month and designate an investor liaison. The details of such actions have now been specified with both the first call and information package scheduled for the end of January.

A consent solicitation is a process where a security issuer proposes changes to agreements with investors.

Tower Health laid off 52 corporate employees (13 percent of corporate staff) Nov. 16 as the health system reduced its hospitals from six to four. 

One of the group's hospital sales included the $28 million offloading of Chestnut Hill Hospital in Philadelphia, a location that had been "underperforming for decades," according to Temple Health CEO Mike Young. Temple Health has a 60 percent stake in Chestnut Hill.

Tower Health did not respond to a request for further comment.

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