Redeemer Health, which owns and operates Holy Redeemer Hospital in the Meadowbrook section of Abington and a branch in Huntingdon Valley, is launching a $46 million plan to improve revenue and cut expenses, The Philadelphia Business Journal reported.

In November, Redeemer had an operating deficit of $53.2 million. The health system’s new multiyear plan came after “breaching a debt service covenant requirement”, The Journal said.

According to public documents, the plan includes:

• Improving emergency department throughput and growing patient volume, while also reducing inpatient length of stay;
• Selling non-core properties;
• Assessing all partnerships;
• Centralizing and standardizing both hospital and physician revenue cycle processes to reduce denials and its accounts receivable backlog;
• Expanding clinical documentation improvement programs to better reflect patient acuity;
• Capturing appropriate reimbursement for care delivered across its inpatient, outpatient and other facility settings;
• Negotiating with vendors to lower costs for pharmaceuticals, clinical supplies and purchased services, and pursing potential vendor consolidation opportunities.

The plan seeks “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 said.

Redeemer Health posted an operating loss of $48.4 million in fiscal year 2024, up 37% from a $33.9 million operating loss in 2023. Their operating results have improved by about $1.6 million through November of fiscal 2025.

In August 2023, the system was downgraded to a “BB” rating in a report by Standard & Poor’s Global Ratings.

Redeemer Health has about 3,200 employees and is the parent company for the 239-bed Holy Redeemer Hospital in Abington.

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Photo: Redeemer Health