Heywood Healthcare of Gardner MA Takes Major Step to Ensure Operational Stability
Heywood Healthcare has sought the protection of Chapter 11 of the U.S. Bankruptcy Code to address financial challenges and regain stability. This comes as good news to the many patients of Heywood Hospital, Athol Hospital, and Heywood Medical Group who have observed management changes this year and a halt to the construction of the new Surgical Pavilion. Heywood Hospital – 116 years of patient care. Athol Hospital – 73 years of patient care.
Co-CEO Tom Sullivan stated, “Though our health system has stood the test of time, we are not impervious to financial challenges. “ Co-CEO Rozanna Penney stated, “In the days and weeks ahead, Heywood Healthcare will continue to provide exceptional patient-centered care and remain laser-focused on operational stability.”
What exactly does the Chapter 11 filing do? Co-CEO Thomas Sullivan explains, “Reorganization is a strategic business measure that provides the necessary framework and process to address historical and pressing fiscal challenges. This path enables us to continue to provide essential healthcare services to our community, while restructuring historical financial obligations.”
The National Institutes of Health did a comprehensive study of what factors influence hospital bankruptcies. See article, CLICK HERE.The study concludes, “Based on our exploratory analysis, we contend both sound financial structure as well as supportive accreditation and quality performance all meaningfully insulate an organization against long-term economic under performance. In the case of Heywood Hospital according to their Press Release, “Strong volume, responsible fiscal management, excellent operational stewardship, robust revenue cycle work, and a dedicated workforce.”
A challenging operational period began 3 years ago when “in the midst of the pandemic, Heywood Healthcare and community hospitals across the Country were adversely affected by workforce and supply chain challenges and the revenue shortfalls in caused.” Athol Hospital recently received a 5 star rating. See previous article. According to the National Institutes of Health study, quality performance helps meaningfully insulate an organization against long-term economic under performance.
What is responsible for the increase in healthcare industry bankruptcies? According to the Gibbins Advisors research report, healthcare bankruptcy filings in the first six months of 2023 are on the rise with 40 in the first half of the year, with 46 filed in the full year of 2022. Complete report in pdf format, CLICK HERE.
Complete Heywood Press Release, CLICK HERE.