Tower Health secures $200M by selling 24 properties to Chicago firm

West Reading, Pa.-based Tower Health has raised about $200 million by selling properties, according to The Philadelphia Business Journal. 

Oak Street Real Estate Capital of Chicago purchased 24 properties owned by Tower Health, including medical offices, outpatient centers, ambulatory surgery centers and the Reading Rehabilitation Hospital. 

The company then leased the properties back to the health system. 

No acute care hospitals were included in the deal, according to the report.

Richard Wells, a spokesperson for Tower Health, told the Business Journal that the financial hit from the coronavirus pandemic accelerated the need for the sales to strengthen its balance sheet. 

“The proceeds will support Tower Health’s preparations for a possible resurgence of the coronavirus later this year, while also improving our overall financial position and ensuring our ability to fulfill Tower Health’s mission and our service to the community,” Mr. Wells told the Business Journal. 

In mid-June, Tower Health said its expenses increased to buy personal protective gear and its revenue dropped 40 percent due to the suspension of elective procedures, resulting in a loss of $212 million.

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