Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBuy a failing hospital and profit. This could be a dangerous new playbook for rich investors
https://www.cnn.com/2019/07/29/economy/hahnemann-hospital-closing-philadelphia/index.html
For decades, Hahnemann University Hospital served as the main safety-net hospital for downtown Philadelphia's neediest residents. But last week, it released its last patient. Within a month, the hospital's 2,572 staff will all have been laid off, and the doors will close, leaving a gaping hole in the city's ability to serve its poor not to mention any victims of trauma, like shootings or car accidents.
"It's not safe. We're right here in the middle of everything. Jefferson [University Hospital] isn't that far, but for a life-threatening situation, minutes matter," said Maria Gutierrez, a Hahnemann oncology nurse who on Wednesday received a call from a manager saying all her shifts had been canceled. "That's why he wants the land."
The "he" Gutierrez was talking about is Joel Freedman, the California-based owner of the private equity-backed company that bought Hahnemann and its sister hospital St. Christopher's for $170 million in early 2018. About a month ago, the entity that owns the two hospitals filed for Chapter 11 bankruptcy protection, saying that although St. Christopher's was profitable, Hahnemann's financial situation was unsalvageable.
Not included in the filing: The entity that owns the entire city block's worth of land underneath the hospital, as well as a few associated medical office buildings and parking garages, which Freedman had split off from the operating businesses when he and his co-investors acquired them. The same central location that made Hahnemann valuable as a health care provider spitting distance from City Hall and the convention center also makes the site incredibly desirable for a high-end hotel or condominiums.
That's fueled accusations from the city, the state, the unions representing the hospital workers and even Vermont senator and presidential candidate Bernie Sanders that Freedman allowed the hospital to slip into bankruptcy, and now wants to free up the land for a potentially lucrative sale.
For decades, Hahnemann University Hospital served as the main safety-net hospital for downtown Philadelphia's neediest residents. But last week, it released its last patient. Within a month, the hospital's 2,572 staff will all have been laid off, and the doors will close, leaving a gaping hole in the city's ability to serve its poor not to mention any victims of trauma, like shootings or car accidents.
"It's not safe. We're right here in the middle of everything. Jefferson [University Hospital] isn't that far, but for a life-threatening situation, minutes matter," said Maria Gutierrez, a Hahnemann oncology nurse who on Wednesday received a call from a manager saying all her shifts had been canceled. "That's why he wants the land."
The "he" Gutierrez was talking about is Joel Freedman, the California-based owner of the private equity-backed company that bought Hahnemann and its sister hospital St. Christopher's for $170 million in early 2018. About a month ago, the entity that owns the two hospitals filed for Chapter 11 bankruptcy protection, saying that although St. Christopher's was profitable, Hahnemann's financial situation was unsalvageable.
Not included in the filing: The entity that owns the entire city block's worth of land underneath the hospital, as well as a few associated medical office buildings and parking garages, which Freedman had split off from the operating businesses when he and his co-investors acquired them. The same central location that made Hahnemann valuable as a health care provider spitting distance from City Hall and the convention center also makes the site incredibly desirable for a high-end hotel or condominiums.
That's fueled accusations from the city, the state, the unions representing the hospital workers and even Vermont senator and presidential candidate Bernie Sanders that Freedman allowed the hospital to slip into bankruptcy, and now wants to free up the land for a potentially lucrative sale.
Sounds like something the stable genius would do. Buy up valuable real estate while screwing over needy people in the communities. Hospital gentrification is really shitty.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
6 replies, 892 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (11)
ReplyReply to this post
6 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Buy a failing hospital and profit. This could be a dangerous new playbook for rich investors (Original Post)
IronLionZion
Jul 2019
OP
Freddie
(9,267 posts)1. That's exactly why it closed
The new owner had no intention of running a hospital. Its sitting in the hottest part of town and soon to be condos. Welcome to America where profit is the ONLY thing that matters.
dalton99a
(81,516 posts)2. Democratic candidates, please take note
IronLionZion
(45,457 posts)3. One candidate has, but he's a socialist
This is how the rich get richer and the poor get screwed even harder.
Wounded Bear
(58,670 posts)4. Vulture capitalism comes to the healthcare industry...
lindysalsagal
(20,692 posts)5. Been working for the catholics for centuries.
Igel
(35,320 posts)6. Allegations are cheap.
Esp. when there's clearly a moral side and clearly an evil person operating out of strictly greed and hate.
Here's more info to get us past the simplicity of just ffffff or 000000.
https://www.inquirer.com/business/hahnemann-turnaround-closure-california-banker-joel-freedman-20190408.html