Tower Health reported its first full-year operating profit in 7 years thanks to Brandywine sale
The nonprofit health system secured a narrow $5.9 million operating profit. Tower's revenue climbed 4.5% to $2.05 billion.
Tower Health reported an operating profit of $5.9 million during the year that ended June 30, compared to a loss of $27 million the year before, the Berks County nonprofit health system reported to bondholders Thursday. If not for the sale of its shuttered Brandywine Hospital, Tower would have had another loss.
Here are some details:
Revenue: Tower reported $2.05 billion in revenue, up 4.5% from $1.96 billion the year before, even though it had only slight increases in admissions, a decline in emergency department visits, and a small decline in inpatient surgeries. Outpatient surgeries were a bright spot. They increased 5.6%.
Expenses: Tower reported a notable increase in interest expense on its $1.3 billion in long-term bond debt following a debt restructuring last September. The health system paid $66.2 million in interest, up 19% from $55.5 million the year before. Meanwhile, Tower spent less on repairs and maintenance. That figure fell 14%, to $56.1 million from $65.2 million.
Notable: The amount of cash Tower had on hand increased to $198 million, up $36 million from the reserves on June 30, 2024. Part of the increase came from the sale of Brandywine Hospital to a real estate developer, who paid $11 million, according to the Philadelphia Business Journal. The cash reserves translated to 38 days of operating expenses, up from 31 days 12 months earlier.