Biggest local health systems not interested in buying Tower Health

Tower Health, a six-hospital system in West Reading, Pa., is looking for a partner to buy the entire system, but the biggest health systems in Philadelphia and Pittsburgh are not interested, the Philadelphia Inquirer reports.

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University of Pennsylvania Health System in Philadelphia and Pittsburgh-based UPMC told investors they are not interested in acquiring Tower Health due to its financial woes. 

Thomas Jefferson University in Philadelphia also just received approval to purchase Philadelphia-based Einstein Healthcare Network, so it is also likely out of the running, according to the report. 

Tower Health has been looking for a “like-minded” suitor to purchase it and help improve its finances. Tower Health’s operating losses have neared $600 million, according to the report. 

Tower Health was hit with a three-notch credit downgrade by Fitch Ratings in March, reflecting significant ongoing financial losses from the COVID-19 pandemic and operational challenges following the 2017 acquisition of five hospitals. 

More articles on healthcare industry transactions: 
Trinity buys majority stake in Premier Health
Troubled Pennsylvania health system looks for a buyer
OU Medicine inks merger to form academic health system

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