Tower Health announced it reduced charges on a variety of medical procedures, medications and supplies at five of its hospitals in order to become more competitive in the Philadelphia metropolitan area.
The reductions, which average about 30 percent, are projected to reduce Tower Health’s gross revenue by $1.69 billion, the Reading-based nonprofit health care organization said.
The reductions went into effect at Brandywine, Chestnut Hill, Jennersville, Phoenixville and Pottstown hospitals.
Tower Health, formerly Reading Health System, acquired the five hospitals in southeastern Pennsylvania in 2017 from Community Health Systems for a reported $418 million.
The reductions came after Tower Health compared its costs to other hospitals in the region.
“Based on that analysis, Tower Health lowered charges at these five hospitals to make them more competitive within the market,” according to a news release.
“Charges for Reading Hospital are already consistent with the regional market and will not change,” it said.
Tower Health notified insurance companies of the reductions.
Patients may notice lower out-of-pocket costs, depending on their insurance coverage.
“When we founded Tower Health last year, one of our goals was to maximize the value of health care by providing high quality at the lowest possible cost,” Clint Matthews, president and CEO of Tower Health, said in a statement.
“Reducing charges at these five hospitals is yet another way we demonstrate our commitment to be a trusted partner in the communities we serve. This is a continuing effort on which we will be focused,” Matthews said.
Tower Health also includes Reading Hospital, Reading Hospital Rehabilitation at Wyomissing and Reading Hospital School of Health Sciences and 22 urgent care facilities.
Tower Health has partnered with Drexel University College of Medicine to build a four-year medical school branch campus in West Reading and Wyomissing called Drexel University College of Medicine at Tower Health. It is expected to be operational in time for the 2021-22 academic year.