Tower Health reported a $16 million operating loss in the first six months of fiscal 2026
The nonprofit health system's cash reserves reached their highest level since 2022.
Tower Health had an operating loss of $16 million in the first six month of fiscal 2026, according to its report to bondholders Friday. In the same period a year ago, the Berks County nonprofit’s loss was $16.1 million.
Here are some details:
Revenue: Revenue from patient care rose less than 1% to $889.3 million, while total revenue climbed 4.3% to $1.03 billion, thanks to a 34% increase in other revenue.
Cash reserves: Tower reported $244 million in cash reserves on Dec. 31. That translates into enough money to keep operating for 44 days without any new revenue. Both of those figures were at their highest levels since 2022.
The quarterly low was in March 2024, when Tower reported $153 million in cash. That amounted to 30 days of cash on hand. Financially strong systems often have 200 days in reserve.
Notable: In November, Tower announced that it was laying of 350 people, or about 3% of its workforce. Pottstown Hospital took the brunt of the cuts, though Tower also closed the bariatric surgery program at Reading Hospital in West Reading.