Phoenixville Hospital Lowering Charges for Wide Range of Services

Phoenixville Hospital Lowering Charges for Wide Range of Services

December 20, 2018

Dear Community Leaders,

I am excited to share with you the news that, effective December 1, 2018, Phoenixville Hospital has lowered
charges for a wide range of services, procedures, tests, medications, and supplies. These reductions will
average approximately 30 percent compared to current charges.

This unprecedented move grows out of Phoenixville Hospital’s membership in Tower Health. When Tower
Health was founded last year, we hired an independent, third-party reviewer to analyze the “charge
master” at each hospital, comparing it against other hospitals in our region. Based on that analysis, Tower
Health has lowered charges at Brandywine, Chestnut Hill, Jennersville, Phoenixville, and Pottstown
hospitals to make them more competitive within our service area. Charges for Reading Hospital are already
consistent with the regional market and will not change.

The charge master is the database of charges for every service, test, procedure, supply, or medicine that a
patient might experience at the hospital. While hospitals rarely receive full charges as reflected in the data
base, a hospital’s charge master often sets the baseline from which payor contracts are negotiated, and
they can also influence out-of-pocket costs for patients. Tower Health projects that the lower charges will
reduce its gross revenue calculations by approximately $1.69 billion across the five hospitals.

Tower Health has notified insurance companies of the upcoming reductions in these hospitals’ charges.
Depending on their insurance coverage, patients may notice lower out-of-pocket costs. Existing insurer
contracts with Tower Health remain unchanged.

One of Tower Health’s goals is to maximize the value of healthcare by providing high quality care at the
lowest possible cost. Reducing charges 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 remain focused.

Sincerely,
Steve Tullman, President and CEO
Phoenixville Hospital-Tower Health