Hahnemann Hospital lays off 175 employees, including nurses

Health system cites declining revenue at Center City Philadelphia medical center

Hahnemann University Hospital on North Broad Street.
Thom Carroll/PhillyVoice

Hahnemann University Hospital laid off 175 employees on Thursday, citing declining revenue and fewer patients.

The layoffs included 65 nurses, 22 service and technical workers and 88 non-union employees, according to hospital officials. With monthly losses between $3 to $5 million, Hahnemann officials said a workforce reduction was necessary.

Kevin Feeley, who spoke on behalf of the hospital, confirmed an earlier report on the layoffs.


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Officials released a statement saying Hahnemann is "the latest example of the ongoing health care crisis that has impacted every hospital in Philadelphia."

"We are proud to serve our community, but the reality is that Hahnemann faces severe financial challenges that threaten its ability to survive," the statement read. "In response, the hospital has undertaken a comprehensive turnaround plan that requires a wide range of difficult decisions, including the need to reduce the size of our workforce to align to current patient volumes."

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

The two hospitals produce between $600 and $700 million of revenue each year, officials said. That's down from nearly $800 million when AAHS bought them. Additionally, officials said Hahnemann sees about 200 to 250 patients each day, down from the upper 200s.

Earlier this year, Hahnemann cut 30 management positions and closed three primary care offices.