General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPhiladelphia'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.htmlhttps://delawarebusinessnow.com/2019/06/private-equity-and-a-bad-day-for-philly/
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.
BigmanPigman
(51,627 posts)I am familiar with Hahnemann since I know many who worked and studied there until recently.
Cirque du So-What
(25,973 posts)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.
SMC22307
(8,090 posts)Igel
(35,356 posts)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.