“We do see a pathway to stability, but we don’t control all the moving parts,” said Joel Freedman, the chairman and founder of El Segundo, Calif.-based American Academic Health System. “We are hopeful we won’t have to close the hospital, but it will require the help of others.”
American Academic bought Hahnemann and St. Christopher’s Hospital for Children from Dallas-based Tenet Healthcare in January 2018.
Mr. Freedman said St. Christopher’s is profitable, but Hahnemann has lost $3 million to $5 million per month.
He partially attributed Hahnemann’s financial straits to lower patient volume; lack of success in negotiating new contracts with commercial insurers; an academic training program that is losing money; and management turnover at American Academic.
Assessing whether to continue certain service lines and considering changes to its academic training program are a couple of steps the hospital is taking to improve its finances, Mr. Freedman said.
American Academic Health System also is seeking higher payments from commercial health insurers and the state.
Earlier this month Hahnemann announced plans to lay off 175 nurses, support staff and managers in a cost-cutting move.
Read the Journal’s full report here.
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