U.S. Bankruptcy Court Judge Kevin Gross on Thursday approved the sale of Hahnemann University Hospital's residents program assets to a group of six area health systems for $55 million.
Last month, Hahnemann reached a deal to sell the assets to a group of area health systems led by Jefferson Health and also includes Main Line Health, Einstein Healthcare Network, Temple University Health System, Cooper University Healthcare, and Christiana Care in Delaware. The Jefferson consortium emerged victorious after 15 rounds of bidding. Tower Health, which was aligned with Drexel University and the University of Pennsylvania Health System, dropped out of the bidding at $51 million. KPC Group of Santa Ana, Calif., dropped out at $29 million.
More than half of the 500-plus displaced Hahnemann residents are now receiving their training at one of the consortium member hospitals.
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The approval of sale appears to mean a much larger pool of funds will be available to the hospital's creditors.
The Centers for Medicare & Medicaid Services (CMS), which reimburses hospitals for their costs incurred training residents, has opposed the sale saying the deal is "contrary to law" and amounted to an "illegal transfer."
Read more about the Hahnemann bankruptcy hearing here.