Tower Health’s credit rating is slipping due to a small financial cushion from having a low cash reserve. While the healthcare nonprofit will continue operating Phoenixville Hospital, it was forced to close three of its others that it purchased in 2017, writes Harold Brubaker for The Philadelphia Inquirer.  

A company’s financial cushion means how many days it can operate without supplementary revenue. As of September 2022, the number of days was only 50. In addition to its drop in unrestricted cash, this earned the nonprofit a lower credit rating from S&P. Originally at “B,” Tower Health has slipped down to “BB-”.  

“While we are disappointed in the S&P rating, it reflects challenges we are aware of and have been working aggressively to address” said Tower Health in a statement. 

Tower Health closed both Brandywine and Jennersville hospitals. Investment bank Houlihan Lokey was hired to help the nonprofit recover financially.  

Read more about Tower Health in The Philadelphia Inquirer.