Abington’s Redeemer Health just had its credit rating downgraded by Fitch Ratings, a sign that the health system is still under serious financial stress, writes John George for the Philadelphia Business Journal.
The drop to a B+ rating means there’s a higher risk that Redeemer might struggle to pay back its debts.
The health system operates Holy Redeemer Hospital in Montgomery County, as well as senior care centers and a home healthcare network across the region. It also owns part of Chestnut Hill Hospital with partners Temple Health and Philadelphia College of Osteopathic Medicine.
Fitch pointed to ongoing losses. Redeemer was down $33 million through the first nine months of the current fiscal year. Last year, it reported a loss of $48.4 million. In response, Redeemer launched a $46 million plan to turn things around. That includes improving emergency room flow, cutting staffing costs, selling off properties it doesn’t need, and ensuring it gets properly paid for services.
So far, the plan is working better than expected. Redeemer has already seen nearly $19 million in improvements.
Still, Fitch says there’s a long road ahead. Redeemer says it’s on track and confident things will improve over the next two years.
Read more about Redeemer Health’s financial plans and its future in the Philadelphia Business Journal.
Editor’s Note: This post was originally published on MONTCO Today in June 2025.
