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August 09, 2019

Regional academic health organizations win bid for Hahnemann residency program

Einstein, Main Line, Jefferson, Temple, Cooper and Christiana Care unite to preserve physician education and patient care

Health News Hahnemann University Hospital
Carroll - Hahnemann University Hospital Thom Carroll/PhillyVoice

Hahnemann University Hospital.

A coalition of six Philadelphia-area health systems won a collective bid on Friday for Hahnemann University Hospital's physician residency program. 

The winning bid of $55 million was submitted by a group comprising Einstein Healthcare Network, Jefferson Health, Main Line Health and Temple Health in Southeastern Pennsylvania, Cooper University Health Care in South Jersey, and Christiana Care Health System in Delaware.


RELATED STORY: Hahnemann University Hospital to close later this year

The systems already have absorbed many of the patients and residents displaced by the impending closure of Hahnemann, slated for early September. 

The bid would provide a long-term solution to keeping those residency positions in the Philadelphia region. Funding for the residency positions is covered by the Centers for Medicare and Medicaid Services. 

The coalition claimed the move will ensure access to patient care services, particularly for underserved populations, while maintaining hundreds of residency positions.

The health systems have been talking "almost daily" to ensure patients and medical trainees find places to go, Jefferson CEO Dr. Stephen K. Klasko said in a statement.

"We've accepted large numbers of patients and current residents," Klasko said. "Now, we want to ensure that the training positions remain in our region for the years to come. Our bid was motivated by the need to keep those positions permanently here in the tri-state area."

The bid is dependent on meeting regulatory approvals and will be reviewed by the U.S. Bankruptcy Court on August 19. Approval will provide medical malpractice insurance for the displaced residents.

Earlier this summer, American Academic Health System – Hahnemann's current owner – announced it would close the Center City trauma center due to unsustainable financial losses. 

American Academic Health System had purchased the hospital last year from Tenet Healthcare Corp. in a $170 million deal that included St. Christopher's Hospital for Children in Juniata Park. AAHS is an affiliate of a California investment firm, Paladin Healthcare. 

The 496-bed hospital – founded in 1848 – employed about 2,500 people at the time of the announcement. It had about 570 residents. 

The coalition of six health systems that won the residency bid already has offered positions to 384 of the displaced residents and held job fairs for nurses, physicians and other allied health professionals. 


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