Neal and Pallone Say Illegal Sale of Hahnemann University Hospital’s Residency Program in Philadelphia Cannot Stand

Sep 10, 2019
Press Release
Urge CMS to Appeal Decision Immediately and Ensure Law Is Properly Enforced

WASHINGTON, DC – Ways and Means Chairman Richard E. Neal (D-MA) and Energy and Commerce Chairman Frank Pallone, Jr. (D-NJ) released the following statement today urging the Centers for Medicare and Medicaid Services to appeal U.S. Bankruptcy Judge Kevin Gross’s decision last week approving the sale of Hahnemann University Hospital’s medical resident training program in Philadelphia, Pennsylvania for $55 million.  Last week, Judge Gross gave CMS one week to appeal his decision:

“We are deeply concerned by Judge Gross’s decision to approve the sale of Hahnemann University Hospital’s residency positions.  Hahnemann’s decision to auction off their residency program in this manner was a clear violation of the law from the start.  While we are thankful that Hahnemann’s current residents have found new programs to complete their education after the hospital’s unfortunate decision to close, the long-term redistribution of Hahnemann’s residency positions should be determined through the processes established by Congress.  The approval of this $55 million sale sets a dangerous precedent and sends a signal to Wall Street that there is money to be made off the downfall of community hospitals.  This sale cannot stand.  We urge the Centers for Medicare and Medicaid Services to appeal this decision immediately and ensure the law is properly enforced.”