Redeemer Health hopes for turnaround with $46M plan

Redeemer Health has announced a plan to launch a $46 million initiative to address a breached debt service covenant, according to the Philadelphia Business Journal. 

Montgomery County consulted with Chicago-based financial advisory firm Kaufman Hall, a healthcare management consultant firm, to help increase revenue and cut expenses.

According to documents recently filed, the plan includes: 

• Improving emergency department throughput and growing patient volume, while also reducing inpatient length of stay;
• Selling non-core properties;
• Assessing all partnerships;
• Centralizing and standardizing both hospital and physician revenue cycle processes to reduce denials and its accounts receivable backlog;
• Expanding clinical documentation improvement programs to better reflect patient acuity;
• Capturing appropriate reimbursement for care delivered across its inpatient, outpatient and other facility settings;
• Negotiating with vendors to lower costs for pharmaceuticals, clinical supplies and purchased services, and pursing potential vendor consolidation opportunities.

Redeemer Health is hopeful that the plan will result in savings of $13.16 million in fiscal 2025 and $30.96 million in fiscal 2026, plus other one-time savings in both years. 

The health system, which posted a $48.4 million operating loss in fiscal 2024, reported an $18.8 million loss in Q1 of fiscal 2025.

Read more about Redeemer Health here.