“It is important to emphasize that a strategic alliance is not a merger between health systems," said Tower Health CEO P. Sue Perrotty.
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The Tower Health Board of Trustees has decided that the medical group will sign a Letter of Intent (LOI) to develop a strategic alliance with Penn Medicine. In a message July 30, Tower Health CEO P. Sue Perrotty “It is important to emphasize that a strategic alliance is not a merger between health systems. We are not being purchased by Penn Medicine. It is a relationship between two separate organizations focused on the joint development of innovative programs and initiatives to deliver superior, cost effective and accessible patient care in the local community and at the respective institutions. These are goals that both our organizations share.”
Chestnut Hill Hospital is a part of the Tower Health network, and already has a Penn presence on its campus, with cardiology and radiology services and Penn Chestnut Hill Family Practice.
Tower Health has faced financial distress in recent years; the system of nonprofit hospitals, including Chestnut Hill, posted $80 million in losses the first quarter of 2021, and nearly $111 million in the previous quarter.
The announcement means no immediate changes but the beginning of a period of discussion with Penn Medicine to determine the specific terms to be included in the agreement. Pending further Board approvals and regulatory review, the agreement could be finalized within six to nine months.