Pa. Gov. Tom Wolf and Philadelphia Mayor Jim Kenney said Monday their administrations are prepared to spend up to $15 million to address "potential gaps in service and continuity of care concerns" related to the bankruptcy of Hahnemann and St. Christopher’s hospitals, and the pending closing of Hahnemann.
They also called on the White House and Congress to match all state and local funding, and to cover the debts accumulated by both governments to help ensure Hahnemann patients and workers are protected.
In a joint statement, Wolf and Kenney said:
“At this point, there is no means to provide public funding to bail out the current owners. We are fighting to maintain patient safety, save access to care and employment, protect St. Christopher’s Hospital for Children, and mitigate the damage done by the current owner. This demands a long-term strategy and giving millions in taxpayer funds to Joel Freedman [president of the hospitals' parent company] or his financiers is not a responsible one.
“We are prepared to spend $15 million from the state and city, to be matched by the federal government, for viable solutions to address gaps in service and continuity of care for Hahnemann patients, and incentivize a long-term solution to emerge to serve the community at this site.
“We need the federal government to step up and join us in protecting these patients and workers. The White House and Congress must be equally invested in protecting patient care in Philadelphia and they should match any state and local funds committed to that goal. We will work with our partners in the Senate and House to fight for federal support," the statement concludes. "As stated previously, while it is clear that the hospital’s current operation is no longer financially viable, the state and city are committed to protecting St. Christopher’s Children’s Hospital and working with potential investors to find support for maintaining a level of medical services in the community served by Hahnemann, as well as saving jobs, lives, and meeting the needs of Philadelphians.”
Philadelphia Academic Health System (PAHS) — a division of California-based American Academic Health System (AAHS) — and its subsidiaries Hahnemann and St. Christopher's filed for bankruptcy court protection on June 30, less than a week after announcing plans to close Hahnemann because of mounting financial losses. AAHS said it has no plans to close St. Christopher's, but it is looking for a buyer for the pediatric medical center.
PAHS officials were not immediately available to comment on the statement from Wolf and Kenney.
The Pennsylvania Association of Staff Nurses and Allied Professionals praised the $15 million pledge, and urged Gov. Wolf to use the funds to bring a buyer to the table who will keep the 170-year old hospital open.
“We thank Governor Wolf and Mayor Kenney for making this commitment,” said PASNAP President Maureen May. “Now we call on all public officials and stakeholders to come together to find a long-term solution.”
About $40 million of PAHS's operating deficit is owed to the city and state governments. Both governments have been working with American Academic Health System to ease the resolution of these debts before its owners declared bankruptcy.
Since that time, the state and city have been working with the on-site management team — which includes a manager appointed by the state Department of Health — to ensure that the hospital’s pending closure is safe and orderly. Any new funding from the state and city, they said, would be used to cover any new plan that might emerge at that site to cover gaps in service and continuity in care should the hospital close.
Total licensed beds
| Rank | Prior Rank | Name / Prior (*new or not ranked) / URL |
|---|---|---|
1 | 1 | Jefferson Health |
2 | 2 | Penn Medicine (University of Pennsylvania Health System) |
3 | 3 | Tower Health |
