Been saying for years that Tower Health (name probably inspired by the clock tower on its Reading Hospital) operates like an aggressive for-profit.

In my view, buying all those other hospitals weren't for charity, but rather a play to dominate health care in the region. In some ways, it made sense, since regional health systems are increasingly common.

However, Tower Health was ill prepared for what it was trying to do. Have to wonder if some top-level executives knew it wouldn't work, but somehow profited from it. Something that should be looked into further, though would presume some already have.

Tower Health should pay some tax to municipalities and the school districts they have facilities in, which is quite a few, especially within Berks County where it's based.

They should have hired UPMCs tax lawyer office...

My guess is that the judgment will include some sort of back taxes, or taxing jurisdictions are sending out back bills as we speak, but tower will inevitably delay things by appealing.

Spotlight PA is the best

>Been saying for years

Same.

Have to wonder if BC/BS, Highmark, Humana, etc., are now looking at the impact of executive salaries on their "non-profit" status.

Can "back bills" for RE taxes be sent out? Not sure that is how it works.

Taxing authorities generally get one chance to send out their RE bills and the taxpayer gets one chance with a limited time period to appeal that bill. Believe that is what was done here, with no reach onto other properties.

Having previously worked there I can say a former CEO was by far the route of many of these problems in my opinion. They implemented policies, and hired many like minded high level employees that benefitted from these policies. It was always about how it benefited the top. He then took a golden parachute an complained that it wasn’t enough as he walked off rich and the health system he robbed blind was burning.

The Philly Inqurier has had a lot of articles on tower healths expansion and current financial woes. They were looking to make a play against a mainline health and Penn Medicine. They overpaid for the hospitals they bought from community health. Then they bought a bunch of urgent cares. Then the lost too much revenue from COVID for elective procedures. They fired that CEO (his bonus was tied to revenue I believe) and have been trying to offload the hospitals they don’t see as being their core. Currently their core is reading hospital, Phoenixville and Pottstown.

Depends on what the judge says. If the judge feels they purposefully misrepresented their non profit status for x number of years I'm wondering if there is a way taxing bodies can ask for back taxes?

this was a state case under state non-profit rules.

The IRS rules on federal non-profit status afaik.

there are a ton of medical schools in philly. What does that medical landscape look like there? in western PA, it's easy -- you have UPMC, Highmark Blue Cross/Allegheny Health Network, and a few smaller independents and smaller networks, but AHN and UPMC have a duopoly mainly.

>Depends on what the judge say

No. In a RE tax appeal, only the tax years appealed are before the court.

oh, interesting. What does it mean going forward? They lose it going forward, but could conceivably reapply? if they tried to reapply, would the court look at it, or an agency in harrisburg?

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thanks for the info.

I did some consulting work for Geisinger health years ago. They told me that they had planned acquisition of 2-5 hospital/hospital systems every year for the next 10 years. Those purchases were solely to reduce their profit margins so that they could maintain non-profit status.

Not sure what all that has to do with a RE assessment appeal. Or with the ruling.

The case was an appeal of RE tax assessments for tax years 2018 thru 2021. Only those years on this particular issue was before the court. I have not seen where Tower appealed the Comm Court ruling to SCOPA. If Tower did not appeal to SCOPA, then their time to appeal has run (30 days from the Feb 10 ruling was today) and the matter goes no further. If they did appeal, then it is not yet showing up on the public docket. I believe an appeal is as of right (no need to request permission to file an appeal).

There is no "reapply" to this type of case. And no court, except SCOPA, to look at it under the rules. No agency in Hbg can overrule a court.

Ok but this is pretty much standard procedure in American corporations.

Yeah, that’s the problem though. It’s not a corporation it’s a not for profit charitable teaching health system.

I once visited a hospital with a concert grand piano in its lobby and someone who was obviously not an amateur playing it. Of course that's not dispositive of the issue at hand, but it didn't give me nonprofit vibes.

Could have been a volunteer...

Probably was, but she didn't bring her own concert grand. :)