Becker's Healthcare January 28, 2025
Redeemer Health, a community-based system headquartered in Meadowbrook, Pa., has outlined a $46 million financial turnaround plan after breaching a debt service covenant requirement, according to the Philadelphia Business Journal.
The turnaround plan comes five months after Moody’s Investor Service downgraded Redeemer rating to “B1” from “Ba2.” The Oct. 15 downgrade reflected the system’s ongoing operating cash flow losses and cash declines, as well as a likely breach of its fiscal 2024 debt service coverage covenant.
Redeemer reported a $48.4 million operating loss in fiscal 2024, a 37% increase from the prior year, and posted an $18.8 million operating loss in the first quarter of fiscal 2025 (the three months ending Sept. 30).
The health system’s turnaround plan includes:
...Today's Sponsors
Today's Sponsor