Covenant Health positioned for turnaround after $60M loss, new CEO says

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After years of financial losses, Tewksbury, Mass.-based Covenant Health has plotted a path for improvement, according to the Boston Business Journal.

The health system, a Catholic network with locations in six Northeastern states, reported operating losses of $5 million in 2016, $4.2 million in 2017 and $60.9 million in 2018.

But Stephen Grubbs, president and CEO of Covenant Health since April, told the Journal the system is "showing strong signs of being back on track" in 2019.

He attributed most of the 2018 losses to slow adoption of its new Epic EHR and to physician turnover.

This year, Mr. Grubbs said he expects to see improvement because productivity is better at system facilities after several months under the new Epic system, and new presidents for Nashua, N.H.-based St. Joseph Hospital and Lewiston, Maine-based St. Mary's Hospital have been recruited.

According to the Journal, Covenant Health also recently cut its workforce by 27 full-time equivalents and has left 300 positions unfilled.

Overall, the health system estimates it will reduce losses to $23 million by  the end of 2019, according to analysts with S&P Global Ratings.

 

 

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