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Redeemer Health files bankruptcy, Holy Redeemer Hospital in Abington to be sold or close
Glenside Local • • business
Key Points:
- Redeemer Health filed for Chapter 11 bankruptcy protection on November 1, with plans to sell or close its 239-bed Holy Redeemer Hospital in Abington Township due to inability to compete with larger hospital systems.
- Interim CEO Jim Logue assured that patient care and hospital operations will continue without immediate impact on the 3,200 employees, urging patients to keep their appointments.
- The health system carries $119 million in long-term debt and has not been profitable since 2016, facing challenges from rising costs, reimbursement issues, and increased competition.
- The bankruptcy filing includes 12 affiliated organizations, and Redeemer Health is in ongoing discussions with other Philadelphia-area health systems but has not finalized any agreements.
- Redeemer Health had missed bond payments in recent months, and CEO Greg Wozniak resigned in September; the system had announced a $46 million plan earlier in 2024 to improve finances through cost-cutting and revenue enhancements.
