Worcester Business Journal

wbjournal.com | October 16, 2023 | Worcester Business Journal 5 Heywood Healthcare files for bankruptcy Heywood Healthcare, the entity op- erating hospitals in Gardner and Athol, has voluntarily filed for bankruptcy aer a challenging year in which its CEO was removed from leadership, a multimillion dollar construction proj- ect was stalled, and its planned merger with the largest healthcare system in Central Massachusetts fell through. Amid its financial challenges, the system has filed for protection with a petition to the U.S. Bankruptcy Court for the District of Massachusetts under Chapter 11 of the Bankruptcy Code, according to an Oct. 2 press release from the healthcare system. is al- lows the business to remain open while restructuring financial obligations. Heywood cited an expensive electronic medical record transition, workforce challenges, and supply chain issues as reasons for its problems. Heywood has two hospitals in its system: a 134-bed facility in Gard- ner and the 25-bed Athol Hospital. Heywood Healthcare also operates Heywood Medical Group, which has an 86-bed mental health and substance abuse recovery facility in Petersham. Heywood Hospital is one of the only remaining independently operated healthcare systems in Massachusetts, along with Milford Regional Medical Center, which just announced a poten- tial merger with Worcester provider UMass Memorial Health. Heywood was pursuing affiliation with UMass Memorial Health, but the merger was called off in January. B R I E F S The Outstanding Women in Business program has been instrumental in spotlighting the pivotal role of women in our region's business. Congratulations on 15 successful years! Longtime Girl Scouts CEO stepping down Pattie Hallberg, who served as CEO of Worcester nonprofit Girl Scouts of Central and Western Massachusetts for 16 years, is step- ping down from the position at the end of 2023. e GSCWM board will over- see the hiring of Hallberg's successor. e nonprofit is employing the South Carolina-based search firm Find Good People to aid the search process. Hallberg is not leaving the role for another position. Among Hallberg's accomplishments during her tenure, she led the merger of three Girl Scout councils based in Worcester, East Longmeadow, and Florence into the current version of the council, representing 186 communities. at effort included opening in 2019 a new 7,400-square-foot headquarters on Century Drive in Worcester. "Pattie's legacy at Girl Scouts of Central and Western Massachusetts is nothing short of extraordinary," GSCWM Board President Nicole Messier said in the press release. "Her leadership has been instrumental in shaping the organization into what it is today." GSCWM reported $3.6 million in revenue in fiscal 2022, according to GuideStar data. Its annual expenses were $4 million for the year. W T H E T I C K E R $380 million Amount raised by Natick-based Electric Hydrogen to accelerate manufacturing of its environmentally friendly electrolyzers at its under-construction Devens facility. Source: Electric Hydrogen 46.9 Central Massachusetts Business Confidence Index score in September, the lowest score in the regional index's two-year history, indicating employers are pessimistic about the future Source: Associated Industries of Massachusetts, Worcester Regional Chamber of Commerce We're concerned about the financial health of our hospitals When UMass Memorial Health shut down its money-losing birthing unit at its HealthAl- liance-Clinton Hospital in Leominster for clinical reasons at the end of September, it was after months of communication, which resulted in significant community push- back and concern. In the weeks since, Heywood Healthcare, an independently owned hospital in Gardner with holdings including Athol Hospital and other entities, filed for bankruptcy, and Milford Regional Medical Center and its associated physician group entered preliminary conversations about affiliating with UMass Memorial Health, saying Milford's financial position has become more precarious since the COVID pandemic. When polled online, more than 75% of WBJ readers said they worried about the finan- cial status of the region's hospitals. F L A S H P O L L Are you concerned about the financial state of hospital care in Central Massachusetts? 156 Shrewsbury St. New Worcester location of cafe and bookstore Root & Press, after its owner couldn't find a suitable location for its expan- sion in its current Tatnuck Square neighborhood Source: Root & Press Pattie Hallberg Yes, I'm worried services may become more limited. Yes, I value being able to have choice when it comes to hospitals. No, it is in patients' best interest for weaker hospital systems to affiliate with stronger ones. No, I have not encountered any change in services. 45% 31% 7% 17% Brought to you by

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