Judge to rule on $55M bid for Hahnemann residency program

A bankruptcy court judge will rule Sept. 4 on whether a consortium of health systems in the Philadelphia area can buy Hahnemann University Hospital's residency program for $55 million, The Philadelphia Inquirer reports.

A coalition of six health systems won a bid to buy Hahnemann's residency program for $55 million in August. Hahnemann filed for bankruptcy earlier this summer and will close Sept. 6.

CMS, which funds the residency programs, is seeking to block the sale in part because it wants to recoup Medicare overpayments it made to Hahnemann, according to the report. If the bid is approved by the judge, CMS is limited to recouping just $3 million. CMS also claims its Medicare agreement with Hahnemann terminates upon closure and can't be transferred to other institutions, according to the report.  

The health systems in the coalition — Philadelphia-based Jefferson Health, Einstein Healthcare Network and Temple University Health System, as well as Bryn Mawr, Pa.-based Main Line Health, Camden, N.J.-based Cooper University Health Care and Wilmington, Del.-based Christiana Care Health System — say they have assumed Hahnemann's business by hiring Hahnemann employees and taking care of Hahnemann patients, according to the report. 

Read more here.


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