After Mulling a Bid on Distressed Tower Health, Joint Venture Decides to Pass

By
LVHN Bucks County
Image via Lehigh Valley Health Network.

After five months of deliberations, Lehigh Valley Health Network (LVHN) and Bucks County-based StoneBridge Healthcare have decided not to bid on the financially troubled Tower Health, writes John George for the Philadelphia Business Journal.

LVHN originally considered a potential deal with Tower, the parent company for Brandywine Hospital in Coatesville, Jennersville Hospital in West Grove, Phoenixville Hospital, and Pottstown Hospital. The Lehigh Valley-based health system felt the array of Chester County hospitals were logical geographical choices.

“They are in a neighboring market,” said Tom Marchozzi, LVHN executive vice president and CFO. “We’re not in any overlapping territories.”

LVHN then joined forces with StoneBridge Healthcare, the company formed recently to rescue distressed hospitals and health systems, to determine if a mutually beneficial deal could be reached.

After many discussions and one meeting with Tower Health’s board of directors, however, the joint venture decided to pass.

“We collectively decided not to submit a bid,” said Joshua Nemzoff, CEO of StoneBridge Healthcare.

Nemzoff declined further comments on the decision, citing non-disclosure agreements with Tower.

Read more about Tower Health in the Philadelphia Business Journal.

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