Drexel sues to block threatened closure of Philadelphia hospital

Drexel University in Philadelphia filed a lawsuit June 21 to block American Academic Health System from closing Hahnemann University Hospital, according to The Philadelphia Inquirer.

In January 2018, American Academic Health System, part of El Segundo, Calif.-based Paladin Healthcare, acquired Hahnemann University Hospital and St. Christopher's Hospital for Children in Philadelphia from Dallas-based Tenet Healthcare. In April 2019, American Academic Health System said Hahnemann University Hospital was losing $3 million to $5 million a month and may have to shut down.

Drexel University has an academic agreement with Hahnemann University Hospital to train medical students and residents there. In its lawsuit, Drexel claims the closure of the hospital would violate the academic agreement and "greatly disrupt the health and medical community in Philadelphia," according to the report.

The lawsuit also criticizes the leadership of Joel Freedman, who controls AAHS through a trust, and demands $13 million allegedly owed for services Drexel's physicians provided at Hahnemann University Hospital.

In a statement to The Philadelphia Inquirer, AAHS officials said the allegations lack merit. Mr. Freedman and the company "have at all times acted with the best interests of the hospitals and our patients at heart," AAHS said.

Access the full article from The Philadelphia Inquirer here.

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