Tower Health, which owns Brandywine, Jennersville, and Phoenixville hospitals, is implementing new cost-cutting measures to save $70 million by June as it continues to search for a buyer, writes John George for the Philadelphia Business Journal.
The health system has decided to reconfigure Tower Health Medical Group, its employed physician group. The process includes:
- consolidating practices to reduce leasing and equipment expenses
- closing several practice locations with consistently high-net operating losses
- transitioning providers from Tower Health Medical Group employment to new agreements with other providers or into independent practices
As part of this reconfiguration, Tower Health is also adjusting incentive compensations for physician and advanced practice providers. The health system set all plan participant incentives for fiscal year 2021 and calendar year 2021 at 60 percent of eligible dollars.
According to the health system, these changes will impact up to 95 providers and 100 support staff.
“We understand the stress that comes with this kind of change, and we are committed to making these transitions with respect and compassion,” said Tower Health’s interim president and CEO, Sue Perrotty.
Read more about Tower Health in the Philadelphia Business Journal.