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EndGOPPropaganda

(1,117 posts)
Sun Jul 7, 2019, 10:02 PM Jul 2019

Philadelphia's working-class hospital (Hahnemann) is being shut down by a private equity firm

https://www.inquirer.com/opinion/commentary/hahnemann-university-hospital-closing-jobs-employees-20190706.html

But in the last 10 years, the institution carved out a niche as a safety-net hospital. Hahnemann filled that void in a needed area with a significant homeless population and many patients without health insurance. Now these patients will seek care elsewhere.


https://delawarebusinessnow.com/2019/06/private-equity-and-a-bad-day-for-philly/

When it came to Hahnemann, the private equity-backedowner that bought the hospital a year and a half ago envisioneda quick turnaround.

It turned out that the new guy was quick to throw in the towel after layoffs and management turmoil. Drexel University, which has a residency program at the hospital has filed suit.
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Philadelphia's working-class hospital (Hahnemann) is being shut down by a private equity firm (Original Post) EndGOPPropaganda Jul 2019 OP
Man, what a shame. BigmanPigman Jul 2019 #1
Fucking Carlyle... Cirque du So-What Jul 2019 #2
Fucking Wall Street vultures. (n/t) SMC22307 Jul 2019 #3
It's not like they buy up well-run and profitable enterprises. Igel Jul 2019 #4

BigmanPigman

(51,611 posts)
1. Man, what a shame.
Sun Jul 7, 2019, 10:40 PM
Jul 2019

I am familiar with Hahnemann since I know many who worked and studied there until recently.

Cirque du So-What

(25,943 posts)
2. Fucking Carlyle...
Sun Jul 7, 2019, 10:56 PM
Jul 2019

They bought and subsequently gutted a company for whom I worked years ago. Vulture capitalism will usher in something even worse than capitalism in its present form.

Igel

(35,320 posts)
4. It's not like they buy up well-run and profitable enterprises.
Mon Jul 8, 2019, 08:49 AM
Jul 2019

The companies/organizations they buy up tend to be, as the article says, "on life support." Moribund. Near death. Soon to be dead without extreme intervention.

Just as with people the EMS take to the hospital and who are placed on life support, some recover, some need reconstruction, some die. A non-profit can only break even (after operational expenses) or run deficits for so long before it, like a person, goes bankrupt. It needs to run a profit after routine expenses because it needs to repair and replace, to improve, just to stay even.

If a hospital doesn't do that, then over the course of 10 years all the equipment gets to be 10 years old. It doesn't buy new, improved technology. Even things like the ACA mandate to make all records electronic was typically expensive, requiring a large up-front expense in both hardware, software, and time to porting all the information over (or even digitizing it and retraining staff to use the new system). Intended to save money, on average, in the long term, that doesn't mean every hospital broke even.

The good news is that other health care systems in the area are already gearing up to take up the slack.

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