Due to financial struggles, West Reading, Pa.-based Tower Health is looking for other health systems to take over St. Christopher’s Hospital for Children, which it co-owns with Drexel University, rather than renew its $85 million line of credit to the hospital, The Philadelphia Inquirer reported April 8.
Tower Health’s credit line was set to expire March 31, but Drexel University renewed its line of credit to the Philadelphia hospital for the next four years.
Philadelphia-based St. Chris has been struggling financially, but has recently improved. Its projected loss was $23.6 million for the year ended June 30, compared to $97.6 million in fiscal year 2021, Drexel University President John Fry told the Inquirer.
“We will stand behind this hospital and we will find a solution. We just need more help than the help that Drexel and Tower can provide,” Mr. Fry told the paper.
The hospital was part of the American Academic Health System bankruptcy in 2019. It was previously owned by Dallas-based Tenet Healthcare.
Tower Health has also been dealing with financial problems, with operating losses of more than $900 million in the last four and a half fiscal years, according to the paper.
Temple University Health System confirmed to the Inquirer that it is in discussions to help support the hospital.
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