Redeemer Health, which owns and operates Holy Redeemer Hospital in the Meadowbrook section of Abington and a branch in Huntingdon Valley, missed a required September 1 payment on $71 million in bond debt and has not yet made its October 1 payment, The Philadelphia Business Journal reported.

According to The Journal, Redeemer Health is carrying about $90 million in bond debt, and the bonds were issued by the Montgomery County Education and Health Authority. The Bank of New York Mellon Corp., which is serving as indenture trustee for the bondholders, “is accelerating all outstanding obligations, including the principal and interest owed on the bonds.”

Defaulting requires Redeemer Health to restructure its debt, which a spokesperson said is already underway, The Journal said.

A segment of Redeemer Health’s statement on the matter:

As we recently shared, leadership is working with our financial advisors and counsel to implement a reorganization of our hospital system to ensure its continued viability and a sustainable business model. We are also working with the agent for the bondholders and other parties, including surrounding health systems, to determine the best path forward to ensure Redeemer continues to operate in the ordinary course.

The 239-bed hospital in Meadowbrook and the system’s other facilities will remain open during that process, The Journal said.

The update comes roughly two weeks after Redeemer Health’s CEO and CFO resigned amid the health system’s ongoing financial strains.

Redeemer Health has posted operating losses every fiscal year from 2017 to 2025. In January 2025, Redeemer Health announced a $46 million plan to improve revenue and cut expenses. The plan sought “recurring savings of $13.16 million in fiscal 2025 and $30.96 million in fiscal 2026, plus other one-time savings in both years”, The Journal previously reported.

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