DISTRESSED DAILY: Tower Health’s Cash Bleed Worsens Debt Ratios

Tower Health is losing so much money that its cash-to-debt ratio -- a key measure of the company’s financial stability -- has fallen below 20%.

The troubled Reading, Pennsylvania-based hospital system has about $1.8 billion of debt outstanding with about $341.5 million of unrestricted cash, according to Fitch Ratings. Its losses means the company has about 55 days of cash on hand as measured by Fitch, which said it expects that liquidity to shrink to about 30 days within three years.

Formed in 2017, when the Reading Hospital and Medical Center bought five hospitals in and around Philadelphia, Tower has ...