Hahnemann

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Interesting article about how things didn’t turn out well. Hahnemann was already distressed which is why it sold itself to PE offering big promises.

The Death of Hahnemann Hospital

When a private-equity firm bought a Philadelphia institution, the most vulnerable patients bore the cost.

www.newyorker.com

 

[deleted126335]

The people at the table doing the deal are not stupid. If they cared about what might happen they would have put in prohibitions in the agreement preventing certain things or requiring certain things. They weren't duped by Wall Street Private Equity sharks making big promises.

 

[PainDrain]

I read a couple articles on the Hahneman case and it’s shocking that this isn’t getting more exposure and scrutiny. The PE group bought the hospital with the backup plan to create a hotel complex out of the infrastructure if and when the hospital failed. This is not how capitalism is supposed to work. It isn’t supposed to be “well, we ran this critical business into the ground and now we are walking away with millions.”

 

[IlDestriero]

Interesting read.
Typical Wall Street cowboy mentality. What worked elsewhere will work there. Didn’t even do the research to see how to implement the changes or if they’re even possible. Surprise, the insurance companies are on to your up charge and admit all insured patients money grab “strategy”, even if you shake your fist in the air and demand it at a meeting. That deal was DOA. There’s a reason none of the profitable hospital systems in the city and suburbs have any interest into expanding there while spending billions expanding elsewhere.
The real tragedy is that they had this great, though struggling, hospital full of people that wanted to work there and care for these disadvantaged patients, for lower pay, or longer hours, and old equipment, etc. and this profiteer strolled in to town and blew it all up, and then shrugged and went back to his ocean view mansion in Orange County. Poor guy lost $10M of his own money. What a shame. So much for that cottage in Nice that he wanted for the summer.

 

[GassYous]

Interesting read.
Typical Wall Street cowboy mentality. What worked elsewhere will work there. Didn’t even do the research to see how to implement the changes or if they’re even possible. Surprise, the insurance companies are on to your up charge and admit all insured patients money grab “strategy”, even if you shake your fist in the air and demand it at a meeting. That deal was DOA. There’s a reason none of the profitable hospital systems in the city and suburbs have any interest into expanding there while spending billions expanding elsewhere.
The real tragedy is that they had this great, though struggling, hospital full of people that wanted to work there and care for these disadvantaged patients, for lower pay, or longer hours, and old equipment, etc. and this profiteer strolled in to town and blew it all up, and then shrugged and went back to his ocean view mansion in Orange County. Poor guy lost $10M of his own money. What a shame. So much for that cottage in Nice that he wanted for the summer.

The nice thing is that we now know how much residents are actually worth since programs across the country were paying ridiculous amounts of money for those extra spots.

 

[deleted941485]

This will continue to play out across the country on a smaller scale. Hahnemann had a lot working against it but the state was of no real help in this scenario either. But honestly, how could this guy not know how DSH payments worked in the state when he was buying for all intents and purposes a safety net hospital?

Hospitals and hospital beds in general are a dying breed. Govt has been in the process of killing it since the 1980s with DRGs, obs rules, and a slew of other regs.

 

[midazzoler]

Just read an article about PE purchasing Medline. Wonder if those of us who use Medline will see any changes.

 

[GassYous]

This will continue to play out across the country on a smaller scale. Hahnemann had a lot working against it but the state was of no real help in this scenario either. But honestly, how could this guy not know how DSH payments worked in the state when he was buying for all intents and purposes a safety net hospital?

Hospitals and hospital beds in general are a dying breed. Govt has been in the process of killing it since the 1980s with DRGs, obs rules, and a slew of other regs.

Those facility fees though