Redeemer Health filed for Chapter 11 bankruptcy protection on Sunday, November 1, The Philadelphia Inquirer reported.

According to their coverage, the health system’s board decided to sell or close its 239-bed Holy Redeemer Hospital in the Meadowbrook section of Abington Township. Interim CEO Jim Logue said in a court filing that the hospital “is unable to compete effectively with larger hospital systems in the area, rendering its future operations as an independent hospital unsustainable.”

Redeemer’s bankruptcy is not expected to immediately affect patient care, no immediate impact is expected for the hospital’s 3,200 employees, and patients should keep their appointments, The Inquirer said.

“Our patients and residents can continue to rely on us for their care and should keep all scheduled appointments,” Logue said in a statement. “Our focus remains on ensuring continuity of services and meeting the needs of the patients, residents and communities we serve.”

Redeemer has $119 million of long-term debt and has not posted an operating profit since 2016. Rising labor and supply costs, reimbursement challenges, changing utilization and increased competition are the driving factors behind the petition.

According to The Philadelphia Business Journal, the bankruptcy petition includes 12 affiliated organizations including Redeemer Health, Redeemer Skilled Nursing Care, HR Physician Services and the health system’s home care businesses. The system said it’s been in “ongoing discussions” with other Philadelphia-area health systems, but no agreement has been finalized.

In October, The Inquirer reported that the system missed a required September 1 payment on $71 million in bond debt and had not yet made its October 1 payment. In late September, CEO Greg Wozniak resigned after just over two years on the job.

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 Philadelphia Business Journal previously reported.

Holy Redeemer Hospital opened in 1959 along with home care and senior living services.

Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. A Chapter 11 filing does not necessarily mean that a business is closing.

More to come.

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