Tower Health conducts layoffs

On Dec. 5, Tower Health said it laid off 30 employees in an effort to streamline operations, The Philadelphia Inquirer reported. 

Additionally, the West Reading, Pa.-based health system also outsourced a number of employees in its information technology department to an external vendor. Those employees are not part of the initial 30-job reduction.

"Although Tower Health's financial position has improved, we still face challenges and are working hard collectively as an organization to improve performance," Tower Health said in an emailed statement to Becker's. "Focusing on our continuous process improvement throughout the healthcare system, we have identified areas where we can improve operations by streamlining processes and optimizing organizational structures. We understand the impact of these actions on our employees, and our team does not make these decisions lightly." 

Tower Health told Becker's it has 11,000 employees.

This marks the health system's second round of layoffs. In April, Tower Health laid off 45 individuals and eliminated 55 positions through attrition or voluntary departures. 

The second round of layoffs come after Tower Health faced a $182 million operating loss for the year ending June 30, a reduction from the previous year's $212 million. 

The operating loss in the quarter ending Sept. 30 decreased to $19.1 million from $37.6 million in the same period last year. Unrestricted cash reserves as of Sept. 30 amounted to $154 million, down from $320 million the previous year.

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