Tower Health to lay off 350 employees, close ICU and cancer center at Pottstown Hospital

Tower Health is laying off hundreds of employees and closing several units within Pottstown Hospital over the next two months, a spokesperson said.

The health care system will eliminate 350 staffers, many in administrative or executive roles, at its facilities in Pottstown, Montgomery County; Phoenixville, Chester County and West Reading, Berks County, where Tower is based. St. Christopher's Hospital for Children in North Philadelphia was the only location unaffected by the cuts. The company on Friday said the changes are designed to build "a stronger financial foundation."

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Pottstown Hospital will be most impacted. The 213-bed clinic is closing its intensive care unit, endoscopy center and McGlinn Cancer Institute over the next 60 days. Existing patients will be transferred to another Tower Health location or new health system entirely.

The spokesperson said those units had too few patients and were financially unsustainable.

"I know these decisions affect colleagues and friends that we care about deeply," Michael Stern, the CEO of Tower Health, said in an internal communication. "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."

The union representing nurses and other health care workers decried the plans, calling on Tower Health to stop the cuts and explore alternatives. Its members promised public action to follow.

"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."

PASNAP counts 275 nurses from Pottstown Hospital in its membership.

Tower Health has restructured several times during the past five years. The company laid off 1,000 employees in 2020, citing massive loss of revenue amid the COVID-19 pandemic, and announced plans to sell off nearly 20 urgent care centers the following year. Chestnut Hill Hospital changed hands in the process, joining the Temple Health network in 2023.

Tower Health also put Brandywine Hospital up for sale. Penn Medicine initially planned to acquire the facility and convert it into a veterans' care center, but backed out of the deal in 2024.

"We have worked diligently these last years to navigate these challenges, but continuing the same path is no longer viable," Stern said in his internal message. "To protect our mission and ensure we can continue delivering exceptional care well into the future, we must make thoughtful, forward-looking decisions today."

PASNAP said the service cuts would take effect Jan. 16, 2026.

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