Financially troubled Redeemer Health failed to make a bond payment on Sept. 1
The Montgomery County nonprofit that owns Holy Redeemer Medical Center in Abington Township said it is working on "a reorganization of our hospital system to ensure its continued viability."
Redeemer Health, a financially troubled Montgomery County healthcare provider, failed to make a bond payment due Sept. 1, according to a notice to municipal bondholders Wednesday.
Redeemer has posted operating losses every fiscal year from 2017 to 2025. Leaders have been working on and off to restructure or sell the system anchored by an Abington Township hospital since 2022.
Redeemer hasn’t yet posted financial results for the fiscal year that ended in June. The default means that the system was running short of cash.
In the nine months ended March 31, Redeemer had a $29 million operating loss on $332 million in revenue. Redeemer had $119 million of long-term debt on March 31.
“Unfortunately, the choice was whether to continue our payments to bondholders (overwhelmingly large financial institutions) or continue to render services to those who needed help the most. We choose the latter,” interim CEO Jim Logue said Wednesday in a message to Redeemer employees.
Logue, who has been at Redeemer as chief transformation officer since the beginning of last year, replaced Greg Wozniak as CEO two weeks ago.
At the same time, Redeemer also announced that former CFO Michael Keen was returning to that position. Keen replaced Kim Cummings, who had been in that job since August 2025.
Logue’s message also said Redeemer management is “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.”
Holy Redeemer Medical Center in Abington Township is licensed for 260 beds but recently has staffed 167 of them. The hospital faces stiff competition from Jefferson Health’s large hospital in Abington, just a few miles away.
Beyond the hospital, Redeemer operates an unusually diversified set of health-related businesses, including home care and retirement communities that have nursing homes.
