Heywood Healthcare, the parent company Heywood Hospital in Gardner and Athol Hospital, will have a confirmation hearing on its plan to exit bankruptcy on Monday, according to an Aug. 23 filing made in the U.S. Bankruptcy Court for the District of Massachusetts, Central Division.
The hospital system filed for voluntary Chapter 11 bankruptcy on Oct. 1 and filed to exit bankruptcy on May 28.
Heywood reported owing $31.3 million to its top 20 creditors in its original bankruptcy filing. Heywood has a total of 6,461 creditors, including high-profile companies such as Consigli Construction of Milford and neighboring Worcester healthcare providers Fallon Community Health Plan and Saint Vincent Medical Group.
The system filed for bankruptcy months after abruptly ousting Winfield Brown, its president and CEO of 12 years, in June, citing the evolving healthcare landscape and the need to keep fulfilling community needs. Later that month, Heywood halted construction on its new $29-million surgical pavilion, which led to multiple lawsuits over unpaid construction work.

Brown was replaced by co-CEOs: Rozanna Penney, former vice president of patient care services, chief nursing officer, and chief operating officer, and executive director of Heywood Medical Group, and Tom Sullivan, former Heywood vice president of financial services. Penney assumed the sole leadership role in early 2024.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.