Nurses Sound Alarm as Tower Health Cuts 350 Jobs, Closes Entire Units
- Tower Health cuts 350 administrative and clinical jobs at its hospitals in Pennsylvania.
- Starting in January, the intensive care unit, medical and surgical step-down unit, and endoscopy center will permanently close.
- Tower Health cites restructuring due to a decline in patient census and revenue losses, but remains committed to helping patients.
In a move to reduce workforce, cut costs, and gain financial stability, Tower Health recently announced that they were laying off 350 employees and reducing services at Pottstown Hospital.
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Starting in January 2026, Pottstown’s intensive care unit, medical and surgical step-down unit, and endoscopy center will all cease operations. Furthermore, there will be a significant reduction in services at the hospital’s McGlionn Cancer Institute outpatient care center. According to Pottstown's website, in June, the Hospital was no longer providing Cyberknife services.
Interestingly, the Cancer Institute was recognized as a Quality Program of the American College of Surgeons as well as nationally acclaimed, surpassing national standards, earning recognition from the American College of Radiation Oncology and the Commission on Cancer of the American College of Surgeons.
Tower Health also operates several hospitals in Pennsylvania, including Phoenixville Hospital, West Reading Hospital, and St. Christopher's Hospital for Children. Layoffs were expected in some capacity at all of the locations except St. Christopher’s, located in Northeast Philadelphia.
Pottstown is a 213-bed hospital that has recently seen a decline in patients, and the units were deemed financially unsustainable.
Hospital Statement
In a press release, Tower Health wrote,
- “These difficult decisions were not made lightly. They were made out of necessity to ensure that we can chart our own pathway forward and continue serving our communities. Our commitment to award-winning, high-quality care and patient safety remains unwavering. These changes are not simply about reducing costs. They reflect a strategic priority to reinvest savings in the pillars that power our future.”
- "I know these decisions affect colleagues and friends that we care about deeply," Michael Stern, the CEO of Tower Health said. "That's why we are committed to approaching every situation with compassion, respect and support. While these changes are not easy, our dedication to our patients remains steadfast. Almost all of the affected services will continue being offered at other sites within our network to ensure uninterrupted access to the high-quality care our communities count on."
Organizational Restructuring
Over the past five years, Tower Health has restructured its organization several times. In 2020, over 1,000 employees, including nurses, were laid off, citing a $212 million drop in revenue due to the coronavirus pandemic. Then, in 2021, Tower announced that it was closing over 20 urgent care centers, selling Chestnut Hill Hospital, and closing Jennersville Hospital.
Tower Health lost more than $190 million combined in the fourth quarter of 2020 and the first quarter of 2021, according to the Reading Eagle. And it lost about $439 million in fiscal year 2020.
Are Nurses at Risk?
As part of the reductions, 131 administrative and clinical positions will be cut. Tower Health has not released specific and whether any nursing positions are being cut. However, the question lingers - what about the nurses from the units that are closing?
PASNAP, the Pennsylvania Association of Staff Nurses and Allied Professionals, is the nursing union that represents 275 nurses from Pottstown Hospital.
- "At a time when communities need more access to care, not less, slashing services and laying off skilled caregivers isn't just reckless, it's cruel," Maureen May, president of the Pennsylvania Association of Staff Nurses and Allied Professionals, said in a statement. "These service cuts will deepen healthcare disparities, force patients to travel farther for essential treatment, and leave caregivers and families in crisis. This community deserves better."
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