Tower Health reported a $3.6 million operating loss in the first nine months of fiscal 2026
The Berks County nonprofit had $1.55 billion in revenue in the nine months that ended March 31.
Tower Health swung to a small operating loss of $3.6 million in the nine months that ended March 31, the nonprofit reported to bondholders last week. During the same period a year ago, Tower had a $4.2 million operating profit.
The Berks County system owns Reading Hospital in West Reading, Pa., as well as Phoenixville and Pottstown Hospitals closer to Philadelphia. It owns St. Christopher’s Hospital for children in a joint venture with Drexel University.
Here are more details from Tower’s latest financial report, posted Friday:
Revenue: Tower’s total revenue climbed 1.6% to $1.55 billion, but its revenue from patient care was down 1.9%. Total revenue for Phoenixville Hospital in Chester County and Pottstown Hospital in Montgomery County fell 9.5%. Tower announced the closure of Pottstown programs last year and laid off 350 people.
Expenses: Two types of Tower’s expenses climbed significantly. The cost of supplies jumped 8% to $334 million. Interest cost was up nearly 19% to $56 million. The report did not provide details on why those two categories far outpaced the organization’s overall 2% increase in expenses.
Notable: Tower had $243 million in cash reserves at the end of March, down $1 million from the end of last year. That amounted to the equivalent of 44 days of expenses, the same as in December.
