Tower Well being has employed a restructuring advisor and is contemplating promoting its Philadelphia-area hospitals after posting steep losses in 2019 and 2020.
The finance chief of embattled Tower Well being is resigning, the Pennsylvania well being system introduced Wednesday.
Gary Conner, Tower’s chief monetary officer, will go away his place on Feb. 19. West Studying, Penn.-based Tower stated it can seek for a everlasting successor to Conner, who has been CFO since 2015.
“We respect Gary’s contributions to Tower Well being’s give attention to assembly the ever-changing healthcare wants of our communities,” the well being system stated in an announcement. “We thank him for his service to our mission and want him one of the best.
Tower spokesperson Richard Wells declined to say why Conner is leaving, however the well being system is in important monetary misery and has employed a restructuring consultant. It posted a staggering $439 million working loss on $1.9 billion in income in fiscal 2020, which ended June 30, an almost 23% loss margin. Executives on a November investor name blamed the pandemic, however Tower additionally misplaced cash in 2019 earlier than the disaster started.
Jim Gravell of Warbird Consulting Companions will function interim CFO whereas Tower searches for a everlasting alternative, the system stated in an announcement. Gravell, who’s already working with Tower, has virtually 30 years’ expertise main giant well being methods. He was previously the CFO of Mercy Well being, a faith-based system with $5 billion in income.
Executives on the November name stated Tower might promote the 5 acute-care hospitals it purchased from for-profit Group Well being Methods in 2017 in Chester, Montgomery and Philadelphia counties. These hospitals misplaced a mixed $235 million in fiscal 2020. In addition they remarked on the underperformance of St. Christopher’s Hospital for Kids in Philadelphia.
Wells declined to share an replace on that entrance on Wednesday.