Meadowbrook, Pa.-based Redeemer Health sought Chapter 11 bankruptcy protection Nov. 2 to address financial challenges and preserve the system’s operations and mission, according to a news release shared with Becker’s.
The release said Redeemer is encouraged by support offers from “surrounding major health systems,” and is working to create a path of continuation for the system. However, no agreement has been reached.
“Redeemer Health remains fully operational and continues to provide high-quality care to our patients throughout this process,” Jim Logue, interim CEO of Redeemer Health, said in the release. “Our patients and residents can continue to rely on us for their care and should keep all scheduled appointments. Our focus remains on ensuring continuity of services and meeting the needs of the patients, residents and communities we serve.”
Redeemer, like many systems, is navigating sustained financial pressure, increasing labor and supply costs, reimbursement challenges, changing utilization and increased competition. The bankruptcy process will help address those challenges and pursue available options for the system’s future, the release said.
Any future arrangement for the system depends on terms and court and regulatory approvals.
The news comes after Redeemer named Mr. Logue became interim CEO in late September, after the system’s CEO, Greg Wozniak, exited and its CFO, Kim Cummings, resigned. The system’s former CFO, Michael Keen, also returned to his role.
Redeemer Health is a Catholic health system that comprises a 239-bed acute care hospital and a physician and provider network. It also has outpatient services and ambulatory sites, a transitional care unit, home health and hospice services, three skilled nursing facilities, personal care, a retirement community, low-income housing, an independent living community, a trauma-informed community resource for families experiencing homelessness, multiple food pantries and homes for developmentally and intellectually disabled adults, the release said.
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