Hahnemann University Hospital's Owners File for Bankruptcy Protection, Hope to Save St. Christopher's Hospital for Children

Hahnemann Hospital, which treats 56,000 patients a year in its emergency room, announced Wednesday it planned to cease ER operations next month. Health officials said that would violate city and state regulations

What to Know

  • Hahnemann handles 56,000 emergency visits each year, in addition to thousands of other patients at its Center City location.
  • St. Christopher's Hospital for Children is expected to stay open following the bankruptcy proceedings.
  • Hahnemann is set to close in September. It stopped accepting trauma patients on Friday evening.

The parent company of Hahnemann University Hospital and St. Christopher's Hospital for Children has filed for Chapter 11 bankruptcy protection in federal court.

Philadelphia Academic Health System, a limited liability company, said in a statement early Monday that the filing seeks to wind down operations at Hahnemann while keeping St. Christopher's in full operation.

In the filing, PAHS said it had liabilities between $100-$500 million with only $10 -$50 million in assets.

PAHS has been battling with state and city lawmakers for the past week over the Hahnemann's future. The company abruptly announced on Wednesday that it would shut down the 495-bed Center City Philadelphia hospital and begin diverting patients from its Level 1 trauma center.

Local and state health officials threatened to take the company to court for not following protocol to, among other things, slowly reduce operations while continuing to provide care.

Despite government threats, Hahnemann stopped accepting trauma patients on Friday night after submitting a closure plan to state health officials. The hospital notified the Pennsylvania Trauma Systems Foundation that it was "de-designating" as a Level 1 and 2 trauma facility.

“Patient safety continues to be our number one priority,” said Allen Wilen, the company's Chief Restructuring Officer. “We are implementing a comprehensive closure plan and working with the Pennsylvania Department of Health to ensure a smooth transition of patients and services.”

Wilen said the bankruptcy filing should give St. Christopher's the most flexibility for restructuring. One of Philadelphia's three children's hospitals, the 188 bed facility employs 1,900 people and serves some of the city's poorest neighborhoods.

According to court filings, PAHS owes $20.1 million to Tenent Healthcare, Hahnemann and St. Christopher's former owners; $14.1 million to Drexel University, which operates Hahnemann's medicial school; and nearly $700,000 to the city; among other debts.

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