Issue link: https://beckershealthcare.uberflip.com/i/1527804
21 21 HEALTHCARE NEWS CEO rebuilds Pennsylvania system after $440M loss By Alan Condon W est Reading, Pa.-based Tower Health's new-look leadership team, organizational structure and culture have helped the health system improve its financial performance by more than $160 million year over year while a debt refinancing deal has secured a longer runway to return to profitability. Sue Perrotty spent nearly three decades in the banking industry, including leading Wells Fargo's global operations, before stepping in as CEO of Tower in February 2021. She was tasked with leading the financial turnaround of an organization that reported a loss of more than $440 million the previous year. "I became Tower CEO at a time when it was in a crisis of care due to the pandemic, a crisis of capital and a crisis of confidence," Ms. Perrotty told Becker's. "We were bleeding money and we weren't confident in our leadership any longer." Tower implemented a holistic turnaround strategy focused on exceptional clinical care, operational efficiency, new leadership and partnerships across lab, pharmacy and IT. New leaders, new culture Tower tackled each issue individually and appointed several new leaders over the last three years, including Michael Stern, president and COO; Mike Eesley, CFO; Pamela Hernandez, senior vice president of human resources and chief people officer; Suzanne Wenderoth, MD, CMO; Bernard Boulanger, MD, CEO of the provider enterprise; and Tom Bartiromo, CIO. "We replaced several top leadership positions and restructured various parts of the health system. Now we've got leaders in place who can take this organization forward for the next decade," Ms. Perrotty said. "We continue to focus on leadership development and human capital growth." e difference between good companies and great companies is how they manage human capital, and Tower managed to restructure its financial capital to ensure it is equipped to execute on its strategic plan, according to Ms. Perrotty. "It's not just about the top down; we rebuilt culture from the bottom up," she said. "We educated everyone throughout the organization about how our financials actually work and how they impact them." One initiative that had a significant effect on Tower's culture shi and financial turnaround was a program called WIGs (wildly important goals). "It was a department level initiative in which staff could recommend changes they believe would make their jobs easier. You could implement them in 90 days. It created a new energy within the organization," Ms. Perrotty said. "Many times at the lowest level of an organization, employees think they can't change anything. We wanted our team to help us make positive changes." Engaging employees at all levels of the health system and seeking feedback on change is crucial for decision-makers during a financial turnaround and is a key part of Tower's new culture. "Ask your people. ey will know a heck of a lot more about what your organization may not be doing well; they just may not feel like Image Credit: towerhealth.org