After fours year leading Tower Health through a difficult but so far successful financial turnaround, Chief Executive Officer P. Sue Perrotty has decided to step away from her position.
The health network — which operates Reading Hospital, Pottstown Hospital, Phoenixville Hospital and St. Christopher’s Hospital for Children — announced Wednesday that Perrotty will be stepping down and returning to her seat on the Tower Health board of directors effective Feb. 23.
Michael Stern, Tower’s president and chief operating officer, will take over as CEO and lead the health network through its next stages.
“We are proud of the clinical care and quality we provide, and we are excited about Tower Health’s future,” Meg Mueller, board chair, said in a statement announcing the change. “We are confident that Michael’s leadership will guide the organization toward continued growth, success and service to our communities in 2025 and beyond.”
Stern joined Tower Health as executive vice president and chief operating officer in 2022, and he was promoted to president and COO this year.
“I am deeply grateful to the board for their unwavering support, and I thank Sue for being an incredible partner and mentor,” Stern said in the statement. “I am honored to lead this organization of compassionate caregivers and physicians.”
Perrotty, a banking and finance veteran with decades of leadership experience, took the helm at Tower in 2021 as the health network faced an uncertain future. Aggressive expansion and the impacts of the COVID-19 pandemic had led Tower to experience several years of losses and cast a dark cloud over its future.
The year prior to Perrotty joining the fold — the fiscal year ending in 2020 — Tower lost over $400 million. That was the third straight year the hospital network experienced significant losses.
Perrotty took on the role of CEO on a temporary basis, using her expertise to help steady the ship and guide the health network through regaining financial stability and rebuilding its leadership team.
And her efforts paid off, with Tower this spring having its first profitable quarter in five years.
“I wasn’t expecting to take on this role four years ago, but I’m glad I did,” Perrotty said in the statement. “The success we’ve seen is a credit to every staff member who, no matter their job, displays excellence in action and cares for our patients and for each other.
“While I was tasked with helping to restore financial stability, I am equally proud of how our clinical quality has never wavered, how our employee satisfaction scores increased, and how our hometown hospitals remain the heartbeat of the communities we serve.”
Stern said he is dedicated to continuing the work that needs to be done to make sure Tower’s turnaround is permanent and that the health network continues to provide top-notch care to the communities it serves.
“Tower Health’s turnaround has been remarkable, but I understand there is still work to do to achieve our long-term goals,” Stern said. “I’m grateful to the staff members and stakeholders who continue to believe in Tower Health, and the patients and their families who trust our team to provide high-quality care.
“I believe the best is yet to come as we continue to align our system, implement leading-edge services and focus on meeting the robust health care needs of our community.”
In addition to her role on Tower’s board of directors, Perrotty will also remain a member of the Reading Hospital Foundation Board of Directors, St. Christopher’s Hospital for Children Foundation Board of Directors and St. Christopher’s Hospital for Children Parent Board.
