Last Updated: Jul 30, 2021
For Immediate Release
July 30, 20201
Tower Health has announced a strategic alliance with Penn Medicine. Tower Health has signed a non-binding Letter of Intent (LOI) to develop a strategic alliance with Penn Medicine.
A strategic alliance is not a merger. Tower Health has not been bought by Penn Medicine and there is no change in ownership. A strategic alliance is an agreement between two separate entities to work toward common beneficial goals, while each retains their independence.
Specific terms of the agreement between Tower Health and Penn Medicine will be finalized over the coming months. As stipulated in the LOI, Tower Health and Penn Medicine will establish an Affiliation Steering Committee, with equal representation from both organizations, that will take approximately six months to evaluate potential areas of collaboration. No additional details will be released during this time. A final agreement will then follow this time period.
Tower Health reports that its financial health has improved since March and patient volumes have returned to pre-pandemic levels. As a separate organization, Tower Health states that it will continue its work to improve its clinical and financial operations.
“The Pennsylvania Medical Society congratulates Penn Medicine and Tower Health on their new alliance,” said PAMED President Michael DellaVecchia, MD, PhD, FACS. “Our state society, along with its locally involved county societies and other concerned stakeholders have been actively collaborating with Tower Health on issues of community care, practitioner wellness, and employment. Tower Health has been commendable through this process and PAMED welcomes uninterrupted continued service to patients and our mutual commitment to the well-being of all physicians and health care professionals serving the new Penn Medicine and Tower Health alliance.”
“Berks County Medical Society looks forward to our continued partnership and open dialogue between PAMED and Tower Health,” said TJ Huckleberry, Executive of Berks County Medical Society. “We will continue to serve as a resource to our members and community as further details of this strategic partnership are formalized.”
PAMED in collaboration with county medical societies, has developed a Tower Health resources webpage, which can be accessed here, to provide updated information and answer physician questions regarding recent developments at Tower Health.
PAMED will continue to provide updates via our various communication channels and the Tower Health resources webpage as additional details are known.
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About the Pennsylvania Medical Society
PAMED is a physician-led, member-driven organization representing all physicians and medical students throughout the state. We advocate for physicians and their patients, educate physicians through continuing medical education, and provide expert resources and guidance to help physicians and their organizations navigate challenges in today’s ever-evolving health care system. For more information, visit www.pamedsoc.org.