Hahnemann University Hospital Owners File For Chapter 11 Bankruptcy Protection
PHILADELPHIA (CBS) - Hahnemann University Hospital's owners have filed for chapter 11 bankruptcy. Philadelphia Academic Health System, which also owns Saint Christopher's Hospital, filed the paperwork shortly after midnight Monday.
Allen Wilen, chief restructuring officer for Philadelphia Academic Health System LLC, says the move will facilitate a restructuring or sale of St. Christopher's, allowing it to remain in full operation.
"While assisting Hahnemann to execute an orderly closing, today's filing will ensure the strength and continued operation of St. Christopher's. After thoroughly examining all financial alternatives, our management team concluded that seeking Chapter 11 bankruptcy for St. Christopher's is the best path forward. It will enable the hospital to explore strategic alternatives for restructuring," Allen Wilen, Chief Restructuring Officer for PAHS said in a statement.
The real estate used the by the two hospitals wasn't included in the filing.
Last Wednesday, Hahnemann announced it was closing in September because of unsustainable financial losses.
It started turning away trauma patients over the weekend. It has notified the Pennsylvania Trauma Systems Foundation that it was "de-designating" as a Level 1 and 2 trauma facility.
Under the restructuring plan, Saint Christopher's Hospital will continue to operate as usual.