Commonwealth and City Commit $15 Million Collective Incentive for Long-Term Solutions

PHILADELPHIA —  Pennsylvania Governor Tom Wolf and Philadelphia Mayor Jim Kenney today said that their administrations are prepared to spend up to $15 million to address potential gaps in service and continuity of care concerns related to the bankruptcy by the corporate owners of Hahnemann and St. Christopher’s hospitals.

Governor Wolf and Mayor Kenney called on the White House and Congress to match all state and local funding and to cover the debts accumulated by both governments to help ensure Hahnemann patients and workers are protected.

The company’s debts to the state and city collectively make up nearly $40 million of its growing $300 million operating deficit. Both governments had been working with American Academic Health System to ease the resolution of these debts before its owners declared bankruptcy.

Due to the irresponsibility of Hahnemann’s ownership, the hospital’s current operation is not financially viable. The state and city have been working diligently with the on-site management team to protect public health by ensuring that the hospital’s pending closure is safe and orderly. Any new funding from the state and city would be used to cover any new plan that might emerge at that site to cover gaps in service and continuity in care should the hospital close.

Governor Wolf and Mayor Kenney’s full joint statement:

“Our administrations continue to work aggressively with our partners in government and Pennsylvania’s medical community to seek a long-term solution to provide health care to those who need it. We are fighting alongside the on-site management team, the workers, the patients and the community to protect patient care and find a viable solution to this crisis created by the current owner.

“At this point, there is no means to provide public funding to bail out the current owners. We are fighting to maintain patient safety, save access to care and employment, protect St. Christopher’s Hospital for Children, and mitigate the damage done by the current owner. This demands a long-term strategy and giving millions in taxpayer funds to Joel Freedman or his financiers is not a responsible one.

“We are prepared to spend $15 million from the state and city, to be matched by the federal government, for viable solutions to address gaps in service and continuity of care for Hahnemann patients, and incentivize a long-term solution to emerge to serve the community at this site.

“We need the federal government to step up and join us in protecting these patients and workers. The White House and Congress must be equally invested in protecting patient care in Philadelphia and they should match any state and local funds committed to that goal. We will work with our partners in the Senate and House to fight for federal support.

“As stated previously, while it is clear that the hospital’s current operation is no longer financially viable, the state and city are committed to protecting St. Christopher’s Children’s Hospital and working with potential investors to find support for maintaining a level of medical services in the community served by Hahnemann, as well as saving jobs, lives, and meeting the needs of Philadelphians.”