What happened after a private equity firm bought a 'safety net' hospital system near Philadelphia? Endless cuts in service, layoffs, and now a threatened closure
It's no surprise that Prospect Medical was following the classic PE formula of "Buy it, squeeze it, flip it." Fortunately, it appears that ChristianaCare's due diligence led them to ditch the deal. Unfortunately, the predominantly Black population that Crozer Health serves is left in the lurch by wealthy investors who could care less about delivering essential care to the community. Shame on them!
I would like to recommend a book that was published recently that describes the destructiveness of our current health care non-system. The book is Medicine as Colonialism by Michael Fine, MD. It's a powerful read
Prospect did similarly in Connecticut. They acquired 3 hospitals, then drove them to bankruptcy. A deal for Yale-New Haven to take over has fallen through, and no other solution has appeared.
Sent a link to this to a friend - here's her comment on yet another Private Equity raid that destroyed another Philadelphia-area hospital, Hahnemann Hospital: "this was also Hahnemann's demise. The beginning occurred when Allegheny health bought Hahnemann, WOmen's Medical etc. nad ran them into the ground when the CEO embezzled millions of dollars. He got a slap on the wrist and did 3 months in a low security prison. The system got sold to Yenet, a greedy for-profit group who did nothing to improve the institution. like Crozer, it served the poorest in Philadelphia as well as Chinatown. Tenet then sold it to a dude from California who saw it as a great condo investment and ran it into the ground. We all sadly left it in September 2019. It still has not been bought and is in such disrepair that I doubt anyone can resurrect it. The rats are scurrying everywhere!! " The CA grifter shut down Hahnemann so fast that its medical students & residents were left scrambling mid-year to find positions.
It's no surprise that Prospect Medical was following the classic PE formula of "Buy it, squeeze it, flip it." Fortunately, it appears that ChristianaCare's due diligence led them to ditch the deal. Unfortunately, the predominantly Black population that Crozer Health serves is left in the lurch by wealthy investors who could care less about delivering essential care to the community. Shame on them!
I would like to recommend a book that was published recently that describes the destructiveness of our current health care non-system. The book is Medicine as Colonialism by Michael Fine, MD. It's a powerful read
Prospect did similarly in Connecticut. They acquired 3 hospitals, then drove them to bankruptcy. A deal for Yale-New Haven to take over has fallen through, and no other solution has appeared.
Sent a link to this to a friend - here's her comment on yet another Private Equity raid that destroyed another Philadelphia-area hospital, Hahnemann Hospital: "this was also Hahnemann's demise. The beginning occurred when Allegheny health bought Hahnemann, WOmen's Medical etc. nad ran them into the ground when the CEO embezzled millions of dollars. He got a slap on the wrist and did 3 months in a low security prison. The system got sold to Yenet, a greedy for-profit group who did nothing to improve the institution. like Crozer, it served the poorest in Philadelphia as well as Chinatown. Tenet then sold it to a dude from California who saw it as a great condo investment and ran it into the ground. We all sadly left it in September 2019. It still has not been bought and is in such disrepair that I doubt anyone can resurrect it. The rats are scurrying everywhere!! " The CA grifter shut down Hahnemann so fast that its medical students & residents were left scrambling mid-year to find positions.