Tower Health's transplant program to go under Penn Medicine banner

Aug. 25—The Tower Health Transplant Institute and related kidney and liver transplant practices will be integrated into Philadelphia-based Penn Medicine, Tower officials announced Wednesday.

In mid-December, surgeries will move to Philadelphia. Screening prior to surgery and post transplant care will continue at Reading Hospital.

Transplant patients will receive information about the Penn institute as well as other regional transplant programs. The transition will not include the long-standing pediatric kidney transplant service provided by St. Christopher's Hospital for Children. That program will continue at St. Christopher's.

It is the first significant change since the two organizations announced what they called a strategic alliance at the end of July.

Faced with bond downgrades to junk status and quarterly losses in the tens of millions of dollars, Tower has been looking to sell part or all of its six hospital system in Berks, Chester, Montgomery and Philadelphia counties.

Tower lost nearly $80 million from January through March. It was an improvement over the previous quarter when the seven-hospital system lost nearly $111 million.

In July, West-Reading based Tower announced it had signed a nonbinding letter of intent to begin developing an alignment model with Penn Medicine, also known as the University of Pennsylvania Health System.

The move announced Wednesday saves the transplant program from complete closure, Tower said.

In a staff memo, Tower Health's President and CEO P. Sue Perrotty said Tower had decided to close the transplant program as a result of the ongoing impact of the pandemic and the need to continue its financial improvement.

"Fortunately, through our recent conversations with Penn Medicine, they asked how they could help us sustain this vital resource to ensure continued access to key transplant services for the residents of central Pennsylvania," Perrotty wrote to employees Wednesday.

Tower is required to give notice to the state Department of Health and the United Network for Organ Sharing of the change to its transplant program.

Costs, pandemic factors

The Tower Health Transplant Institute was established in 2019 and had only recently started performing transplants at Reading Hospital.

It performed its first kidney transplant in May 2020 and its first liver transplant in December. The transplant team of about 35, though new to Tower and Reading Hospital, had been together at Hahnemann Hospital's kidney and liver transplant program when that hospital closed.

According to the federal Organ Procurement & Transplantation Network, there have been five kidney transplants at Reading Hospital since the institute opened. There was one liver transplant this year and one last year.

At Penn, doctors have transplanted 93 livers and 134 kidneys so far this year.

It's unclear from the announcement what the financial aspect of the arrangement is. Tower officials said the long-term costs of building the program were unsustainable and the program's growth suffered under COVID-19.

Since 1966, the Penn Transplant Institute has been a pioneer in organ transplantation and is one of the most active solid organ transplant programs in the country, officials said. Its clinicians and staff have supported more than 12,500 solid organ transplants.

"This is an important and exciting development for Tower Health, allowing us to maintain key kidney and liver care services within the region and provide patients convenient access to one of the most renowned transplant programs in the country," Perrotty said in a news release.

"While our transplant institute and its skilled clinical team have produced excellent outcomes, the long-term costs associated with growing the program were not sustainable," she said. "After careful deliberation, moving forward with Penn Medicine was a natural fit to build on our important work and ensure the ongoing viability of these services."

Perrotty said the actions represent a commitment by Tower Health and Penn Medicine to central Pennsylvania residents who will now have convenient access to exceptional clinical care at one of the nation's premier transplant programs.

Reading Hospital will remain the home for local transplant kidney and liver practices under the Penn Medicine banner.

Perrotty said specialty programs like Tower's Transplant Institute typically have five years of growth before they can achieve sustainability.

She said even though the program reached early critical milestones, including attaining regulatory approvals and producing excellent clinical outcomes, the institute's growth was severely impacted by the COVID-19 pandemic.

"In fact, transplant procedures were halted for several months soon after the program was approved to perform them beginning in late 2019," she said. "Since then, persistent headwinds have continued to challenge the growth and sustainability of THTI."

Perrotty said Tower anticipates a majority of current transplant institute staff will have the opportunity to transition to Penn's regional program at Reading Hospital, to Penn's institute positions in Philadelphia or to other roles within Tower Health.

She said in the memo that Tower Health will now begin working with current patients, the Penn institute and the appropriate regulatory agencies to smoothly transition care and medical records and ensure the opportunity for all patients awaiting transplant at Tower to be evaluated for transition to the Penn program or another program of their choice.

Links to our continuing coverage of Tower Health's financial crisis:

Tower Health pursuing 'strategic alliance' with Penn Medicine

Drexel University College of Medicine at Tower Health in Wyomissing ready for students

Tower Health continues to seek buyer as it reports $80M quarterly loss

Tower Health announces departure of Reading Hospital President and CEO

Why is Tower Health adding urgent care centers amid financial struggles?

Tower Health consolidating physician practices, impacting nearly 200 doctors and staff

A decade of change at Tower Health anchor, Reading Hospital

Tower Health bonds downgraded by S&P

Tower CEO to step down

Tower Health executives to take pay cuts

Tower Health might sell off hospitals in 2021; except for the 'mothership' of Reading Hospital

Rating agency says Reading Hospital is the only profitable part of Tower Health system

Agencies downgrade Tower Health to junk bond status

Tower Health fights to weather the pandemic storm