Failed Sale of Brandywine Hospital in Coatesville Puts Snag in Tower Health’s Turnaround Plans

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Brandywine Hospital
Image via Tower Health, Facebook.
Tower Health’s turnaround has hit a snag after the failed sale of its shuttered 171-bed Brandywine Hospital in Coatesville to Penn Medicine.

The sale of the shuttered Brandywine Hospital in Coatesville to Penn Medicine fell through at the end of January, putting a dent into Tower Health’s turnaround plans, writes Lauren Coleman-Lochner for Bloomberg.

The attempted sale of the campus was another step in Tower Health’s attempts to essentially undo the ill-fated 2017 merger that turned it into a six-hospital system.

Tower Health has managed to stay cash-flow positive for the last two quarters, despite losing around $1.4 billion since the tie-up.

“While there is still more work ahead, this consistent upward trajectory is a testament to our effective cost management strategies, expansion of service lines, volume increases, and our steadfast commitment to system-wide performance improvement,” said Kristin Boyd Edwards, a Tower Health spokesperson.

However, the plans for further progress toward recovery were stalled when Penn backed out of buying the 171-bed hospital, which it was planning to use for veterans’ treatment.

“After an intensive due diligence process, we have determined that we would be unable to build out the infrastructure for the project in the space available on the Brandywine campus and will terminate our letter of intent with Tower to purchase the property,” said Penn Medicine.

Read more about Tower Health’s turnaround plans for Brandywine Hospital in Bloomberg.

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