ABINGTON TOWNSHIP, PA — The parent company of Holy Redeemer Hospital has filed for Chapter 11 bankruptcy.
Redeemer Health — which owns the hospital at 1648 Huntingdon Pike in Meadowbrook — filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.
The health system's board has decided that the 239-bed hospital must either be sold or closed due to financial losses and inability to compete with larger systems, according to the bankruptcy filing.
The Pennsylvania Catholic healthcare system entered Chapter 11 after years of operating losses and missed payments on $71 million in bond debt, Capital Digest reported.
The hospital will remain open under court oversight.
According to industry sources, Redeemer Health has $119 million in long-term debt and has not generated a profit since 2016.
The hospital provides emergency services, and comprehensive inpatient and outpatient services including cardiology, cancer services, orthopedic surgery and rehab, spinal surgery, pulmonary medicine, imaging services, and a sleep disorders center.
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