Heywood Healthcare emerges from Chapter 11, will remain an independent organization
Published: 10-03-2024 3:18 PM
Modified: 10-08-2024 1:49 PM |
ATHOL – Heywood Healthcare held a stakeholder meeting Thursday to discuss its future now that it has emerged from Chapter 11 bankruptcy protection as a standalone entity, meaning it will remain as an independent health care organization.
In announcement sent Monday, Heywood President and CEO Rozanna Penney said, “We are proud to exit Chapter 11 bankruptcy as an independent community-owned and community-governed organization. Under the protection of Chapter 11, Heywood Healthcare successfully restructured our debt and out-of-market contracts while maintaining and growing critical regional services, such as behavioral health and obstetric care.”
At Thursday’s meeting, Penney gave assurances that Athol Hospital would remain a priority for Heywood Healthcare, which operates hospitals in Gardner and Athol.
“Athol Hospital is incredibly valuable to our health system and to the region,” she said, adding that, in partnership with the state Office of Rural Health, Heywood would review its role in the community and what services can be optimized.
She noted, among other things, that Athol Hospital has seen an increase in the need for oncology services, and is looking to expand that program.
“There’s more to come,” she said, as Heywood continues its assessment of the needs of North Quabbin and expansion of services.
Penney thanked the administration and staff at Heywood, community leaders, and the community as a whole for supporting the organization as it navigated through the bankruptcy process, which it entered last October. She also thanked the state Office of Health and Human Services, the state Department of Public Health, and the state Office of Rural Health for their assistance.
“Thank you all for your ongoing support,” said Penney. “Everything you have done over this year, coming together in a completely bipartisan way, united by one belief – people in north central Massachusetts matter. Their access to health care matters.”
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Penney pointed out that Heywood Healthcare stands among a distinct minority of health care organizations that have emerged from Chapter 11 as standalone entities.
“Only 5% of those who enter Chapter 11 emerge as standalones,” she said. “It’s almost unheard of.
“Unfortunately, the reality of today’s health care is that community hospitals, and rural hospitals in particular, are closing at a very fast rate. Currently, 30% of rural hospitals are at threat of closing around the country. We need to strengthen our community hospitals. We need to be able to provide care to our patients locally, where the patients are.”
“We really celebrate what you’ve been able to accomplish here,” said Undersecretary Chris Harding of the state Office of Health and Human Services. “We’re dealing with a lot of challenges in the commonwealth right now. But I think that to sustain, rally and support you coming out of bankruptcy is among the best conclusions at this point. This community should be very thankful for what you have accomplished.”
When Heywood Healthcare filed for Chapter 11, “The organization faced $51 million in long-term debt obligations, over $30M in outstanding payables, necessitating drastic restructuring efforts,” a release stated.
“Since then,” the statement continued, “the healthcare system has not only reduced long-term debt by $10 million and eliminated more than $20 million in pre-petition obligations, but also restructured numerous commitments to achieve over $11 million in annual savings. Renegotiated payor agreements are set to generate an additional $16.5 million in reimbursements over the next three years, allowing Heywood to reinvest in infrastructure and restore the strength of its balance sheet.”
Other speakers at Thursday’s event included Dr. Robert Goldstein, commissioner of the Massachusetts Department of Public Health; state Sen. Peter Durant; state Rep. Jon Zlotnik; President Steve Walsh of the Massachusetts Health and Hospitals Association; Gardner Mayor Mike Nicholson; and Robert Chauvin, president of the Board of Heywood Healthcare.
State Rep. Susannah Whipps and Athol Town Manager Shaun Suhoski also made brief comments. Each thanked Penney for Heywood’s service and commitment to the Athol region.
Greg Vine can be reached at gvineadn@gmail.com.