Gardner, Mass.-based Heywood Healthcare exited Chapter 11 bankruptcy after addressing contract issues, seeking commercial rate improvements and organizing finances.

The health system filed paperwork to emerge from bankruptcy in May and announced its official exit Sept. 30. Heywood has spent the last year restoring financial stability as an independent community-owned and community-governed organization.

Heywood restructured its debt and out-of-market contracts while growing and maintaining regional services including behavioral and obstetric care.

"Throughout this process, we optimized our operations, consolidated services where appropriate, maintained our community programs, and substantially improved employee satisfaction for the first time in five years, as evidenced by our most recent Press Ganey staff engagement survey," said Rozanna Penney, president and CEO of the system, in a news 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."

The health system includes a 134-bed acute care community-owned nonprofit hospital as well as a 25-bed critical access hospital, both in Massachusetts. Heywood also has a medical group including primary care physicians and specialists.