Reading Health Completes Acquisition Of Pottstown Medical Center

POTTSTOWN, PA — The former Reading Health System has completed its acquisition of Pottstown Memorial Medical Center and four other hospitals in the region from Community Health Systems, they announced on Friday afternoon. Reading has also re-branded their company to Tower Health.

The acquisition, which was announced back in May, is effective Oct. 1.

The agreement includes the sale of five hospitals owned by Community Health Systems: Phoenixville Hospital, Brandywine Hospital in Coatesville, Chestnut Hospital in Philadelphia, Jennersville Regional Hospital in West Grove, and Pottstown Memorial Medical Center.

"We are coming together to create an even more dynamic, expansive and nationally recognized health system," said Clint Matthews, President and CEO of Tower Health. "Our new name, Tower Health, reflects our collective strength, innovative spirit and bold commitment to taking healthcare to new heights."

On Sunday, Independence Blue Cross announced that Tower Health's new properties would not be covered in the Independence network because of contract disagreements.

"Independence had provider agreements with these five hospitals which were scheduled to expire next year," Anthony V. Coletta, president of Independence Blue Cross Facilitated Health Networks, said in a statement. "We had provided the new parent company, Reading Health System (Reading), with a fair and reasonable proposal to assume these contracts based on our careful consideration of various factors, including the potential long-term impacts to Independence customers. Unfortunately, on Friday, September 29, Reading informed us that they did not accept our proposal."

Coletta said that they would provide coverage for the next 30 days at these hospitals at in-network levels.

"We want to communicate the choices that members have for care at every other general acute care hospital in the southeastern Pennsylvania region which are all part of the Independence network," Coletta added.

Former owners Community Health, a for-profit medical business based in Franklin, Tennessee, had been rumored to be looking for a buyer for its five area hospitals since last September.

Tower also owns Reading Hospital's Reading Hospital Rehabilitation at Wyomissing, Reading Hospital School of Health Sciences, and Reading HealthPlex, an innovative advanced surgical center; Tower Health Medical Group, a comprehensive network of primary and specialty providers; Tower Health Partners, a clinically integrated network; and Tower Health/UPMC Health Plan.

Patch file photo