PHILADELPHIA (CBS) — Two Philadelphia hospitals are being sold, as Tenet Healthcare is unloading Hahnemann University Hospital and St. Christopher’s Hospital for Children.
The Dallas-based Tenet Healthcare, which has had a Philadelphia presence for nearly 20 years, has entered into a definitive agreement to sell Hahnemann and St. Christopher’s to Paladin Healthcare for $170 million.
“Philadelphia is a great healthcare town,” said Paladin President Barry Wolfman.
He says both Hahnemann and St. Christopher’s have rich histories.
“We thought acquiring them from Tenet and operating them independently would be part of a successful plan,” he said, adding that operations will remain at their current levels at both facilities.
When asked about any personnel cutbacks, Wolfman says they value the contributions that the staff at the hospitals make and, in his words, “we’ll lean on them to help make us successful.”
Paladin currently manages four hospitals in Southern California and Howard University Hospital, in Washington D.C.
Subject to regulatory approvals and other conditions, the close is expected to be completed early next year.
Tenet Healthcare, one of the largest U.S. hospital companies, entered the Philadelphia market in 1998 with eight local hospitals, all but two of which have since been sold or closed. Now it’s unloading the last two.
There has been quite a bit of drama at Tenet recently with board members resigning, and its CEO announcing that he will be stepping down under shareholder pressure.
Hahnemann’s CEO says Paladin’s acquisition will benefit “patients, employees, physicians, and the community for years to come.”
Hahnemann, at Broad and Vine Streets, has 496 beds in its medical center. St. Christopher’s, on Erie Avenue in Juniata Park, has 189 beds.