Hospital Bankruptcy Crisis

People from Philadelphia Pennsylvania and its surrounding suburbs, including southern New Jersey are probably aware of the fact that the entities that own Hahnemann University Hospital and St. Christopher’s Hospital for Children in Philadelphia filed for Chapter 11 last summer. While the plans were to keep St Christophers open, the plan was to close Hahnemann. What locals may not be aware of is the fact that hospitals from around the country, especially those in poor and rural areas, have also filed bankruptcy. According to a January 9, 2020 article on Bloomberg.com by Lauren Coleman-Lochner and Jeremy Hill, at least 30 hospitals filed bankruptcy in 2019. When a bankruptcy is filed by any business, concerns often relate to the potential job losses and drop in income. However, when the entity filing bankruptcy is a hospital, additional issues including the ability of those patients to get health care is also a cause for concern. Through Chapter 11 bankruptcy, some of the hospitals may be able to reorganize and survive. But for the one’s that must close, it is a double tragedy.