Redeemer Health, Roseland Hospital File Chapter 11 Days Apart
Pennsylvania-based Redeemer Health filed for Chapter 11 bankruptcy on Nov. 2, followed by Chicago-based Roseland Community Hospital on Nov. 4, with both saying operations will continue normally during the process. Redeemer cited sustained financial pressure, rising labor and supply costs, reimbursement challenges, shifting utilization and increased competition, and said it had missed bond payments due Sept. 1 and Oct. 1 on bonds with about $87 million in outstanding principal; it also named Jim Logue interim CEO after recent executive turnover. Roseland said it needs to restructure debt tied to a malpractice settlement, threatened lawsuits, decades of safety-net underfunding, and potential Medicaid cuts under HR 1, and expects to submit a reorganization plan within 120 days. Roseland had announced plans to close its labor and delivery unit by the end of October and had submitted a "Pivot Plan" to the state to expand behavioral health and other services.