'Restructuring historical financial obligations': Heywood Hospital files for bankruptcy
Heywood Hospital announced Monday that is has filed for Chapter 11 bankruptcy protection.
In a press release, co-CEO Tom Sullivan said: "Though our health system has stood the test of time, we are not impervious to financial challenges."
Heywood Hospital dates to 1907, built with money donated by Martha Heywood, the widow of Gardner furniture manufacturer Henry Heywood. He was president of the Heywood-Wakefield Co. He had long envisioned a hospital for Gardner, bothered that injured workers would have to travel to Boston for top care. Henry Heywood Memorial Hospital, as it was called for many years, initially had 20 beds.
According to the press release, the bankruptcy filing was made with a focus towards long-term viability.
"Heywood Healthcare took a major step to address many of the financial and operational business challenges adversely impacting the health system and hindering its sustainability and ability to explore new affiliation opportunities," the press release states. "This path enables us to continue to provide essential healthcare services to our community, while restructuring historical financial obligations.”
Pandemic, other financial strains led to bankruptcy filing
Citing the pandemic as a factor in the bankruptcy filing, other financial strains on the hospital included: a costly and lengthy electronic medical record (EMR) transition, managing its aging infrastructure, engagement in a milestone construction project, as well as the current economic landscape. The financial strains were exacerbated by low reimbursement rates.
According to the press release, the health care system, which includes both Heywood and Athol Hospitals, has made progress. "Strong volume, responsible fiscal management, excellent operational stewardship, robust revenue cycle work and a dedicated workforce has contributed to improving its financial performance," the press release states.
Heywood Healthcare's troubled times
It has been tough going for Heywood Healthcare this year.
Win Brown, who had served as CEO for a decade, was ousted in June, and replaced by co-CEOs Tom Sullivan and Rozanna Penney.
Also that month, the surgical pavilion construction was halted. Earlier that month, the stabbing of an ER nurse by a patient forced the hospital to implement strict new security procedures.
In April, pulmonary outpatient services closed. Vice President for External Affairs Dawn Casavant said that the hospital had had only 1,700 patients the previous year.
In January, merger conversations between Heywood and UMass Memorial HealthCare fell apart. Officials cited "bad timing."
Going forward
Because the bankruptcy filing is a Chapter 11, the hospital will be able to continue operations while the filing is processed.
“Access to quality healthcare in the Gardner and Athol areas remains our utmost priority. We are committed to our community, our patients, our medical staff and our employees. Core hospital services will continue to operate as usual. In the days and weeks ahead, Heywood Healthcare will continue to provide exceptional patient-centered care and remain laser-focused on operational stability," Penney wrote in the press release.
This article originally appeared on Gardner News: Heywood Hospital files for Chapter 11 bankruptcy: What to know
