Photo | Courtesy of Heywood Healthcare
Rozanna Penney, president and CEO of Heywood Healthcare
September 30, 2024
Heywood Healthcare exiting from bankruptcy
Photo | Courtesy of Heywood Healthcare
Heywood Hospital in Gardner
Heywood Healthcare has announced its stand-alone exit from Chapter 11 bankruptcy, almost exactly one year after the Gardner-based firm initially filed for bankruptcy in October 2023.
The announcement from Heywood followed a Monday confirmation hearing and a May filing seeking to exit bankruptcy.
“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," Rozanna Penney, President and CEO of Heywood, said in a Monday press release. “Heywood’s success is a direct result of the hard work and commitment of our dedicated trustees, leaders, physicians, advanced practice providers, and employees.”
Heywood, which owns hospitals in Gardner and Athol, reported owing $31.3 million to its top 20 creditors in its original bankruptcy filing, including high-profile companies such as Consigli Construction in 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 2023, 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.
After a brief stint as co-CEO alongside Tom Sullivan, Heywood’s former vice president of financial services, Penney was named the company’s sole CEO in early 2024.
Heywood was represented by Ed Green, an attorney with Boston-based law firm Foley & Lardner LLP, during the bankruptcy proceedings.
Eric Casey is a staff writer at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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