Category Archives: Injunction

Jefferson Health CFO walks back stance that Einstein is at risk without merger

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Jefferson Health Announces Partnership with Prepared Health to Coordinate Care Transitions from Hospital to Home - Dina

Jefferson Health walked back its stance that Einstein Health Network’s flagship hospital is at risk of financial failure without a merger during the first day of arguments at a trial, according to Law360.

The Federal Trade Commission’s legal challenge to block the proposed merger of Einstein Healthcare Network and Jefferson Health started in court Sept. 14. The FTC argues that combining the two Philadelphia-based systems would reduce competition in the Philadelphia region and Montgomery County.

In response to the legal challenge, Jefferson Health and Einstein argued that the merger is a matter of survival for Einstein’s flagship hospital. 

The health systems argued that Einstein, which has only had annual operating profits twice since 2012, is on a path to financial failure without the deal and needs $500 million to invest in key capital projects and deferred maintenance. Further, the organizations said that without the infusion, Einstein will continue to weaken “as it is forced to cut services or close facilities.”

However, at day one of the trial, Jefferson Health CFO Peter DeAngelis conceded during arguments that Jefferson had no evidence that Einstein is in danger of insolvency, despite painting the finances as bleak, according to Law360. 

The hearing on the preliminary injunction is expected to last the entire week, but a decision won’t happen by the end of the week. An additional round of filings must be submitted by the FTC and the two health systems by Sept. 28. The judge overseeing the case hopes to issue a decision before Jan. 1, according to The Philadelphia Inquirer. 

 

 

 

 

Einstein’s flagship hospital at risk without merger, Jefferson and Einstein say

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FTC says merger of Jefferson and Einstein would raise hospital prices 6.9%

The merger of Einstein Healthcare Network and Jefferson Health is a matter of survival for Einstein’s flagship hospital, the two Philadelphia systems argued in a federal court filing this week, according to The Philadelphia Inquirer.

The health systems are attempting to overcome opposition to their merger from the Pennsylvania attorney general and the Federal Trade Commission.

A Sept. 14 hearing is slated on the FTC’s preliminary injunction request. 

A court filing from the two health systems argued that Einstein, which has only had annual operating profits twice since 2012, is on a path to financial failure and needs $500 million to invest in key capital projects and deferred maintenance.

Without the infusion, Jefferson and Einstein said Einstein will continue to weaken “as it is forced to cut services or close facilities,” the Inquirer reported.

“Einstein was unable to identify any alternative buyer to Jefferson that possessed the financial strength and scale necessary to address Einstein’s financial problems,” the filing read, according to the Inquirer. “No other potential strategic partners were willing and able to commit to keep EMCP [Einstein Medical Center Philadelphia] open with its current set of services.”

The FTC announced in February its intent to sue to block the merger, arguing that combining the two systems would reduce competition in Philadelphia and Montgomery County.

“Jefferson and Einstein have a history of competing against each other to improve quality and service,” the FTC said in the February announcement. “The proposed merger would eliminate the robust competition between Jefferson and Einstein for inclusion in health insurance companies’ hospital networks to the detriment of patients.”

The FTC said that with a combination, the two parties would own at least 60 percent of the inpatient general acute care service market around Philadelphia and at least 45 percent of that same market in Montgomery County.

 

 

 

Judge halts Philadelphia hospital closure

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https://www.beckershospitalreview.com/finance/judge-halts-philadelphia-hospital-closure.html

Image result for hahnemann university hospital

A Philadelphia Common Pleas judge granted part of a preliminary injunction request sought by the city to stop Hahnemann University Hospital from closing, but the Philadelphia hospital plans to continue scaling back services this week.

Judge Nina Padilla granted the injunction, which stops Hahnemann’s owners from shutting down the hospital without a closure plan authorized by the Philadelphia health commissioner. The injunction specifically prohibits Hahnemann’s owners “from closing, ceasing operations, or in any way further reducing or disrupting services” at the hospital’s emergency room until the health commissioner signs off on the closure plan, according to KYW Newsradio.

Hahnemann is diverting high-level trauma cases, but the hospital’s ER will remain open to treat patients with minor health issues, Marcel Pratt, city solicitor of Philadelphia, told KYW Newsradio.

Although the ER will remain open, Hahnemann plans to scale back other services this week. The hospital said it will stop all nonemergency surgeries and procedures, including child deliveries, on July 12, according to CBS Philly.

Philadelphia Academic Health System, which entered Chapter 11 bankruptcy June 30, plans to close Hahnemann University Hospital by Sept. 6.

 

Oral arguments to be heard in birth control coverage case

Posted on by • Posted in Birth Control, Birth Control Coverage, Dept of Health and Human Services (HHS), Health Insurance Coverage Adequacy, Health Insurance Industry, Injunction, Lawsuit, Religious Exemptions • Leave a comment

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A federal judge in California will hear oral arguments today in a case that could decide whether employers can refuse to provide certain health services that go against their religious beliefs.

Following a 2011 HHS mandate that required employers to provide certain health care — including birth control and emergency contraception — the Catholic nonprofit Little Sisters of the Poor sued in 2013 to be exempt from the rule, but five years and lengthy court battles later, the case is still ongoing.

New HHS rules created in 2017 allowed for religious exemptions for employers, including the group run by nuns, but 13 states and the District of Columbia sued to block the rules.

Two judges in January temporarily blocked the rules from going into effect, and today’s hearing will decide whether those injunctions will stay in place.