Tower Health reported a $4.2 million operating profit in the nine months ended March 31
Tower said it has had positive cash flow for eight consecutive quarters.
Tower Health reported a $4.2 million operating profit in the nine months ended March 31, compared to a $27.4 million loss a year ago, Tower reported to bondholders Wednesday.
The latest results included a $14.7 million gain related to a change in the way the nonprofit based in Berks County values bills from insurers and others that it has not yet collected.
Tower said in a statement that the quarter ended March 31 was its eight consecutive quarter with positive operating cash flow, following years of losses.
The health system also noted that its cash reserves, measured by the number of days the reserves could pay for operations, increased to 41 on March 31 from 39 on Dec. 31.
Tower’s total revenue climbed 7% to $1.53 billion from $1.43 billion. The revenue gain came despite a 2.9% decline in hospital admissions. Strong gains in outpatient surgeries helped offset that drop.
In a move to increase reimbursement, Tower shifted some physician visits to hospital outpatient departments. That is reflected in a 13% decline in other physician visits, according to Tower’s report to bondholders.
Tower owns Reading Hospital, with 697 beds, in West Reading, as well as two smaller hospitals in Phoenixville and Pottstown. It also owns St. Christopher’s Hospital for Children in a 50-50 joint venture with Drexel University.