Heritage Valley Kennedy Hospital in Kennedy Township, Pa., will officially close at 11:59 p.m. on June 30 due to declining patient volumes and diminishing reimbursements, a spokesperson for the hospital confirmed to Becker’s.
Beaver, Pa.-based Heritage Valley Health System acquired the hospital in 2019 and operates two other hospitals in Beaver and Sewickley, Pa.
The hospital closure, announced in April, affects 210 employees. As of June 30, about 75% of those employees “have accepted vacant positions at our other patient care locations, while the remaining 25% have secured roles outside the organization,” said Norman Mitry, president and CEO of the health system, in an email to Becker’s,
The closure follows a phased wind-down services at the hospital:
- Inpatient behavioral health services: Ended June 20
- Outpatient surgical services: Ended June 26 (relocating to Heritage Valley Sewickley and Heritage Valley Ambulatory Surgical Center, effective July 7)
- Emergency department: Closes June 30
Some services will remain available at the adjacent medical office building, including a walk-in urgent care clinic and lab draw services. Urgent care imaging and outpatient rehab services will be available at the medical office building at a later time, according to the health system.
Fitch Ratings on June 30 downgraded Heritage Valley Health System’s issuer default rating from “A” to “A-”. The downgrade was a result of “wider-than-anticipated losses in fiscal 2024” and with projected full-year losses of $46 million.
“While management has made progress in restructuring various areas of the organization, including the pending closure of the hospital facility at the Heritage Valley Sewickley, Kennedy Campus, the operating environment remains highly challenging, characterized by sustained cost pressures, longer lengths of stay, and increased payor denials,” according to the ratings agency.
