Financially troubled Tower Health — owner of Brandywine, Jennersville, and Phoenixville hospitals — has withdrawn from the market. It is instead pursuing a strategic healthcare alliance with Penn Medicine, writes John George for the Philadelphia Business Journal.

The health system’s board has signed a non-binding letter of intent to start developing an “alignment model” with Penn Medicine.

Tower emphasized it is not being acquired by Penn Medicine. It will continue to function as an independent organization as it proceeds with efforts to improve both clinically and financially.

According to the letter of intent, the two health systems will establish an affiliation steering committee comprising equal representation from both organizations. Within approximately six months, a committee will evaluate potential collaboration areas within the healthcare alliance.

The aim is to jointly develop “innovative programs and initiatives that provide exceptional care and a high-quality patient experience.”

“Penn Medicine is one of the premier healthcare systems in the country, embodying all of the key attributes we were looking for in a strategic affiliation,” said Tom Work, chairman of Tower Health’s board of directors. “We are excited to work together to finalize the terms of our alliance.”

Read more about Tower Health in the Philadelphia Business Journal.