Copyright The Philadelphia Inquirer
Redeemer Health, the Philadelphia region’s only remaining single-hospital health system, reported a $16.7 million operating loss in fiscal 2025. That was the Montgomery County nonprofit’s ninth straight annual loss. The loss in the year that ended June 30 was an improvement from its $53.2 million operating loss in fiscal 2024. The improvement was partly thanks to the proceeds from the sale of two home care businesses in New Jersey for $23 million and the sale of three office buildings for $3.55 million, according to Redeemer’s audited financial report that was published last week. After the fiscal year ended, Redeemer sold its 20% stake in Chestnut Hill Hospital to majority owner Temple University Health System. Temple said in its audited statement that it paid Redeemer with a $6.21 million note due Sept. 1, 2027. In addition, Temple will pay 5% interest per year. Here are details on Redeemer’s fiscal 2025 financial results: Revenue: Redeemer reported $479.9 million in total revenue, up 8.5% from $442.5 million the year before. The gain came from what is called other operating revenue, which included net proceeds from the business and asset sales. Redeemer did not respond to a request for details on what else that category contained. Patient revenue rose 22.5% at Redeemer’s nursing home and assisted living unit and 4.5% at its hospital in Abington Township. But outpatient surgery and independent living revenue fell significantly, as it did in home care and hospice services because of the New Jersey sale. Key financial measure: Redeemer’s cash reserves for its hospital and physician practices fell to the equivalent of 52 days at the end of June. The system had 157 days of cash at the end of fiscal 2019, the last full fiscal year before the coronavirus pandemic started and widely disrupted the finances of healthcare providers. Patient activity: Most area health systems saw increases in the number of patients they treated last year, even as they struggled with lower profitability. But Redeemer reported declines in hospital discharges, baby deliveries, surgeries at the hospital and at Redeemer’s ambulatory surgery center, and in diagnostic and rehabilitative services. Bucking that trend was a small gain in emergency department visits, which increased by 1.2%, to 35,794.
