Financially troubled Tower Health and Philadelphia-based Penn Medicine have decided to no longer pursue their strategic alliance, the two systems said in a Feb. 10 filing.
While the two systems will not move forward with the alliance first revealed in July 2021, they will continue to work together in “areas of mutual interest,” the filing said.
“Under current market conditions, both organizations feel it is necessary to focus on their individual organizational goals and community needs,” the statement read.
West Reading, Pa.-based Tower Health last month named a new CFO and is undergoing a strategic review as it seeks to right its financial ship.
Penn Medicine operates eight hospitals in its service area.