Parent Company Caritas Christi Absorbs Losses While Launching $22 Million Capital Improvement Plan for Modernization
NORWOOD — Hit by sweeping industry pressures including Medicare cutbacks, tightfisted HMOs, and shorter patient stays, Caritas Norwood Hospital has posted a record $9 million loss, marking the largest deficit in the hospital’s history. Chief Executive Delia O’Connor stated that administrators are actively evaluating expenses to bring the hospital into the black by fiscal year 2000, while the parent network, Caritas Christi Catholic Health System, absorbs the financial blow. Dr. John Cadigan, president of the hospital’s medical staff and chief of cardiology, noted that the facility inherited significant financial burdens and an inefficient billing system when Caritas acquired the Neponset Valley Health System—which includes Norwood and Southwood hospitals—following the collapse of a planned acquisition by Columbia/HCA Healthcare Corp.
Despite the troubled financial picture, which would have exceeded $14 million without a $5 million settlement payoff from Columbia/HCA, Caritas has expanded its committed capital investment from $15 million to $22 million to revitalize the 79-year-old, 197-bed facility. Major improvement plans include constructing a new cardiac catheterization laboratory, a pediatric care unit overseen by Children’s Hospital physicians, a modern day surgery area, and the hospital’s first Catholic chapel. Furthermore, a $4.7 million overhaul of the outdated emergency room will relocate services to the rear entrance with improved parking and upgraded operating room equipment. While the facility lost four obstetricians to Sturdy Hospital following the merger and the cessation of birth control and abortion services, administrators remain focused on marketing expanded maternity and cardiac programs to secure the hospital’s long-term future.
Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger
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