From: Clint Matthews, President and CEO
Date: January 29, 2021
Update on Tower Health’s Financial Turnaround
I am reaching out to share an update on Tower Health’s ongoing turnaround initiatives. As a leader in our community, it’s important for you to have the latest information and hear from us directly.
First and foremost, please know that we are wholly focused on the immediate public health challenge of COVID- 19. Across our system, as of December 2020, we have administered over 100,000 COVID tests and treated more than 17,000 COVID-positive patients, including over 3,000 inpatient admissions.
Our entire team – from our physicians and nurses to our respiratory and lab professionals, alongside the many other technical and support staff who make our work possible – has shown unwavering commitment to our patients and communities throughout this pandemic.
We are all deeply grateful for their tremendous courage and dedication.
As we continue to prioritize patient care, we are also undertaking initiatives to improve our financial situation. No health system has been immune from the financial impacts of COVID-19. This public health crisis has only underscored how critical our mission is, and our Board and leadership team have mobilized to put in place a thoughtful and deliberate process to chart the right path forward.
I want to share some preliminary updates on what we have already achieved and what you can expect in the coming weeks and months.
I want to be clear that no further decisions have been made regarding Tower Health facilities or services. As we’ve communicated previously, we are exploring all options for a stronger future. This week, the Board reviewed preliminary recommendations focused on performance improvement. From here, the Board will continue to assess information and make decisions carefully, over a period of weeks and months. We are determined to get this right. This will be a smart and strategic turnaround, not a rushed process.
I can report that much progress has already been made:
- In November, we engaged a leading national firm, Guidehouse, that is widely respected for its careful approach and focus on patient care and clinical quality. Guidehouse is working with us to identify operational improvements and explore possibilities as we navigate this transition.
- The Board has established a special Tower Health Transformation Committee, led by Chairman Tom Work, to oversee this effort and ensure our financial turnaround remains a key priority as we navigate the many challenges of the pandemic. This committee includes me and other Board members, along with Guidehouse leadership. In addition to the Transformation Committee, we have formed an Assessment Steering Committee as well as Implementation Committees, under my direction, that include members of Tower Health leadership, physicians, and expert advisors.
- Together, we have already identified significant additional cost-saving and revenue improvement opportunities, building on the initial operational improvements that we began implementing earlier in 2020. Many of these improvements involve taking advantage of our collective Tower Health strength, such as standardizing the purchasing of supplies and pharmaceuticals across our enterprise. Each enhancement we make through these changes puts us on stronger footing for the future.
- In the coming weeks, Guidehouse will provide Tower Health leadership with additional recommendations, at which time the Board will engage in further discussion and deliberation. Tower Health management has also contracted with Guidehouse to assist in implementing the final recommendations over the coming months and year.
- This will be an ongoing effort. We are thinking long-term, guided by our mission and intent on navigating this transition with a focus on clinical quality, access to care, service to our communities, and responsible stewardship of resources.
Our Board is committed to this approach and will carefully consider all options and all available information before making long-term decisions.
We will be transparent throughout this process and I will continue to provide updates as they become available. I also welcome your questions and input as we move forward.
The road ahead will be challenging, but we are a resilient organization. We are meeting the challenges of the pandemic head-on, and our core strengths give us a solid foundation to build on for the future.
Thank you for all you do for our communities. Please don’t hesitate to contact me directly.
Sincerely,
Clint Matthews
President and Chief Executive Officer Tower Health
