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Judge approves $55M sale of Hahnemann residency programs

A bankruptcy court judge ruled Sept. 5 that a group of six health systems in the Philadelphia area can buy Hahnemann University Hospital's residency program for $55 million, according to The Philadelphia Inquirer. 

U.S. Bankruptcy Judge Kevin Gross ruled in favor of Philadelphia-based Hahnemann, which says the money will help the hospital pay its creditors.

The ruling came despite objection from CMS, which funds the residency programs. Lawyers from CMS argued the sale was against the law and Hahnemann's Medicare agreement terminates upon closure and can't be transferred to other institutions. 

The federal government has one week to appeal the decision.

The coalition of six health systems — 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 —  won a bid to buy Hahnemann's more than 550 residency slots for $55 million in August. 

Hahnemann filed for bankruptcy in June and will close Sept. 6.

Read the full report here

More articles on transactions and valuation:
Health industry transactions ramped up in July
CHS sells 2 Florida hospitals
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