Tower Health Cuts 1,000 Positions Amid Coronavirus Crisis

PHOENIXVILLE, PA — Tower Health, which owns Phoenixville and Pottstown hospitals along with several others in southeastern Pennsylvania, has permanently cut about 1,000 positions, they announced on Tuesday, pointing to a loss of revenue during the coronavirus crisis. The layoffs impact about 900 people, with around 10 percent of the positions unfilled.

In addition to the cuts, Tower has also closed several of its services, including the Pottstown Hospital Maternity Unit, the Coventry Foot and Ankle center, Premier GYN in Limerick, and behavioral health services at Reading Hospital. "Potential additional future actions may be taken" as well, Tower noted.

The healthcare system is hopeful the layoffs will save them around $230 million over the next two years. Around $212 million, a 40 percent drop in revenue, was lost due to the shut down of nonessential services during the height of the crisis. Net spending also increased over the same period due to need for increased staffing and protective gear.

"The decision to reduce our workforce has been difficult and painful, because it impacts lives," Tower CEO Clint Matthews said in a statement. "It is necessary, however, to ensure that Tower Health can continue to serve the community with high-quality healthcare in the months and years ahead."

>>Tower Health To Furlough 1,000 Employees Amid Coronavirus Impacts

Tower originally only furloughed 1,000 workers back on April 21, calling it, at the time, an "extraordinary circumstance" that had the potential to be temporary.

Laid off employees are being offered severance packages and assistance with job placement, Tower said.

Tower purchased five hospitals in the region from Community Health Systems back in Oct. 2017: Phoenixville Hospital, Pottstown Memorial Medical Center, Brandywine Hospital in Coatesville, Chestnut Hospital in Philadelphia, and Jennersville Regional Hospital in West Grove.

This article originally appeared on the Phoenixville Patch