Tower Health Medical Group

Nonprofit profile at a glance

EIN
232266054
IRS 990 coverage
2009–2024
Official website data refreshed
Sep 2026
Forms available
Form 990 2024
Location
West Reading, PA, US
Phone
1-833-348-6937
Rating
78
Verdict
SUPPORTED
Rating confidence
Moderate

Official website

Reported finances

Revenue
$223,182,300
Expenses
$386,786,022
Assets
$45,465,395
Liabilities
$75,093,033

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

24 people listed

Executive titles in this filing

  • MICHAEL STERN (PRES/CEO 2/2)
  • P SUE PERROTTY (PRES/CEO T 2)
  • BERNARD BOULANGER MD (EVP/CEO PROV)

Highest reported compensation

  • MICHAEL STERN (PRES/CEO 2/2): $1,565,707 total reported compensation
  • P SUE PERROTTY (PRES/CEO T 2): $1,246,887 total reported compensation
  • SUZANNE WENDEROTH (FORMER EVP P): $1,240,093 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

THMG is the region’s premier physician-directed, multispecialty group of healthcare professionals who participate with Tower Health in managing population health and promoting wellness, delivering healthcare that is readily accessible, compassionate, and of the highest quality and value, and engaging in clinical research and the education of healthcare professionals and our communities.

What it reported doing in 2024

Expenses incurred in providing various other healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, or ability to pay. Other physician services include: revenue expense ambulatory specialties 15,708,532 23,550,491 behavioral health sciences 3,753,940 6,897,957 cardiology 18,212,711 25,371,178 emergency 22,874,900 33,573,909 neurosciences 9,670,311 17,951,187 women's healthcare 21,187,735 34,566,813 oncology 684,273 1,478,119 orthopedics 3,283,335 5,095,779 pathology 3,875,761 5,202,518 pediatrics 8,391,616 12,669,009 radiology 17,152,117 22,580,774 support services 6,177,379 17,250,197 surgical specialists 13,561,640 26,708,470 trauma 3,026,747 7,112,874 other 45,208 4,056

Operating model

Revenue model
Earned-program. 98% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 87
  • Transparency & Controls: 70
  • Accountability: 85
  • Sustainability: 9
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 93.5%; rating input score 93
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 91.7%; rating input score 92; 8th percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 90%; rating input score 90; 38th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -73.3%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 0.12; rating input score 3; 3rd percentile among comparable filings
  • Liabilities to assets ratio: 1.65; rating input score 2; 2nd percentile among comparable filings
  • Officer compensation ratio: 1.8%; rating input score 59; 59th percentile among comparable filings

Growth

  • Program expense growth: 8.3% per year; rating input score 100; 66th percentile among comparable filings
  • Revenue growth: 11.3% per year; rating input score 100; 81st percentile among comparable filings
  • Asset growth: 13.3% per year; rating input score 100; 82nd percentile among comparable filings

Details

  • What they do: 2 programs and campaigns described on the official site · 1 operating location identified
  • Where the money goes: 100% of revenue deployed · 93.5% of spending went to programs
  • Governance: 9 of 10 board members independent · 7 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $361.6M in reported program spending
  • Leadership: top reported pay $1.6M · 24 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 4 contractors listed · $3.8M reported
  • Consistency: 26 of 27 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 15 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • Related organizations: 25 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Sustainability: Operating margin scored 1/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 3/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 2/100.
  • Review — Sustainability: Officer compensation ratio scored 59/100.