Hahnemann University Hospital Closure

Last Updated: Apr 1, 2020

Hahnemann University Hospital is now closed. The Pennsylvania Medical Society and component county medical societies understand that this is a blow to the medical community and the residents they serve. We will continue to update this page with resources and information in an effort to assist physicians and residents during this difficult time.   

IMPORTANT NOTE: The information below was updated on March 4, 2020 to reflect details about the Bankruptcy Court’s approval of a settlement with Hahnemann’s owners to pay for tail insurance coverage.

While employed, Hahnemann’s physicians-in-training received medical professional liability coverage through the Philadelphia Academic Risk Retention Group, LLC (PA RRG). Under the PA RRG policy, residents and fellows were insured with claims-made coverage, which was originally set to terminate on Jan 11, 2020 at 12:01 a.m. This policy was then extended to Feb. 11, 2020 and was later extended again to March 12, 2020.

On March 3, 2020, a federal judge approved a settlement with Hahnemann's owners to pay for the long-tail coverage. PAMED has been informed that the first premium on the tail coverage approved by the bankruptcy court has been made. PAMED has also been informed that certificates of insurance for the approved policy are now available for covered individuals.

PAMED and the Philadelphia County Medical Society have developed resources to provide guidance on claims-made insurance. Please note that the documents have not yet been updated to reflect the results of the March 3 bankruptcy court settlement with Hahnemann’s owners. Get these claims-made insurance resources via the links below:

How can I receive a certificate of insurance of the new court-approved policy?

Certificates of insurances can be obtained by contacting Lockton Insurance Brokers. Please send such requests to CRamos@lockton.com or KEkman@lockton.com.

PAMED, the AMA, and the Philadelphia County Medical Society have hosted two webinars for residents affected by the Hahnemann closure. Are recordings of the webinars available?

Yes, you can view the webinars below. Please note that the recordings were made prior the bankruptcy court's settlement with Hahnemann's owners on March 3, 2020.

Part 1 (Recorded on Dec. 18, 2019)


Part 2 (recorded on Jan. 8, 2020)



Where can I find answers to frequently asked questions from PAMED’s first webinar for Hahnemann and St. Christopher’s physicians?

This FAQ document answers the following questions:

  • What is Mcare?
  • What is the mandatory medical liability insurance coverage requirement for physicians practicing in Pennsylvania?
  • What are the insurance coverage requirements under Mcare?
  • When is a resident considered “Mcare eligible”/ “Mcare ineligible”?
  • When does a resident qualify for an unrestricted license to practice medicine?
  • Where can I find a list of accredited graduate medical training programs?
  • I was a PGY1/PGY2/PGY3 while training at Hahnemann University Hospital/St. Christopher’s. I am unable to get a quote for coverage. Why?
  • I obtained an unrestricted license for the purpose of moonlighting. Does this change the type of coverage I would obtain?
  • I am a Hahnemann resident and I did a rotation at St. Christopher’s. Was I covered by Hahnemann’s policy or two policies during my training?
  • How do I send notice of a potential claim?
  • How do I get a loss run report?

View FAQs here

Has the Commonwealth of Pennsylvania become involved in efforts to secure medical liability tail coverage for former employees affected by the Hahnemann bankruptcy?

Yes. On Dec. 11, 2019, the Pennsylvania Department of Health (DOH) filed a motion with the U.S. Bankruptcy Court requesting an order compelling debtors to obtain post-closure tail insurance coverage. In the motion, DOH says that it has determined that it is in the best interests of the public for the debtors to obtain tail insurance covering former residents, fellows, and medical staff of Hahnemann and former residents, fellows, and medical staff of St. Christopher's, including those who will not be employed by the new owners. 

Is the Pennsylvania Professional Joint Underwriting Association (JUA) doing anything to assist the Hahnemann and St. Christopher's physicians?

In a letter sent to the Pa. Insurance Department (PID) on Nov. 26, JUA shared its proposal to use surplus funds to:

  • Cover up to 50 percent of the cost of tail coverage for Hahnemann residents and fellows who have been displaced and left without tail coverage, up to a total of $25 million
  • Cover 10 percent of the premium cost for the displaced attendings who seek coverage from JUA

JUA asked the PID to take any steps to grant approval, if needed, in a timely manner.

On Dec. 24, 2019, the PID sent a letter in response to JUA's request. "Given the importance of understanding the position of the court in this matter before considering alternative solutions, the PID’s evaluation of your request must await the resolution of this active litigation," the letter said. The PID indicated that it would respond again once the outcome of the court proceedings is known. Read the PID's letter

What action has the Accreditation Council for Graduate Medical Education (ACGME) taken concerning the medical liability coverage issue affecting Hahnemann and St. Christopher's physicians?

On Jan. 6, 2020, ACGME shared a news release on this issue. According to the release, "The ACGME has notified American Academic Health System, as well as the Pennsylvania Insurance Commissioner, Secretary of Health for the Commonwealth of Pennsylvania, and the Pennsylvania Attorney General, that HUH is in violation of the ACGME Institutional Requirements and that it must have malpractice insurance, which includes coverage of any future claims (e.g., tail insurance), for all residents and fellows."

You can find ACGME's news release here.

What should Hahnemann physicians know about the credentialing process?

For all Hahnemann physicians that need to find positions and credential at various hospitals, please note the information below that you must gather. Your first stop should be with the Hahnemann Medical Staff Office:

Nancy Marone, BS CPMSM
Hahnemann University Hospital
Director of Medical Staff Affairs
Phone: 215-762-1020
Fax: 215-762-1474

In order to be credentialed for a new position you will need the following:

  • Current CV signed and dated
  • 5X7 signed copy of all your state licenses
  • Copy of DEA registration
  • Current copy of current professional liability insurance coverage face sheets indicating limits, dates of coverage
  • Copy of CME documentation for the past (2) two years
  • Copy of your professional school diploma
  • Copy of internship/residency/fellowship certificate(s)
  • Copy of specialty board certificate(s)
  • Past insurance companies for ten (10) years. Names, addresses, and policy numbers
  • Minimum of three (3) professional references. Names, addresses, city, state, zip and emails
  • Complete description of liability claims – Claims history for ten (10) years is required
  • Written explanation of any gaps in time from time of graduation from medical school
  • Government issued photo (clear passport photo or clear copy of driver’s license photo)
  • Recent 3x5 photo for scanning purposes
  • Immunization and PPD testing in accordance with the hospital requirement as well as Influenza Vaccination
  • ACLS/BLS Recertification certificate
How can I make sure my CAQH record is up to date in order to facilitate the insurer credentialing process?

You can login to CAQH to check your information at https://proview.caqh.org/Login/Index. CAQH offers answers to frequently asked questions here.

For additional assistance, you can contact the CAQH Help Desk via live chat or by calling 1-888-599-1771. Live chat can be accessed by logging in to your account and clicking the chat icon at the top of the page. CAQH Live chat hours are Monday through Friday, 8:30 a.m. - 6:30 p.m. (EST). CAQH phone hours are Monday through Thursday, 7 a.m. - 9 p.m. (EST) and Friday 7 a.m. - 7 p.m.(EST). 
What has the Educational Commission for Foreign Medical Graduates (ECFMG) done for Hahnemann physicians with J-1 visa status?

In this statement issued on June 28, 2019, ECFMG says that it is focusing its efforts on assisting the international physicians in training at Hahnemann under ECFMG J-1 visa sponsorship. ECFMG is reaching out to these physicians to provide them with support and assistance as they transition to other training programs. 

ECFMG offers a Hahnemann resource page here.

Hahnemann residents/fellows sponsored by ECFMG in J-1 visa status may contact ECFMG with questions and concerns: Tracy Wallowicz, Director, EVSP and Compliance: 215-823-2120 or twallowicz@ecfmg.org.  

How will GME funding be handled for Hahnemann residents and fellows who are transferring to training programs at other hospitals?

ECFMG has shared some basic information on funding that may be helpful to Hahnemann residents and fellows. ECFMG says:

  • Funds from CMS for the training of physicians are owned by the training hospital (in this case, Hahnemann), not by any affiliated medical school(s).
  • When a hospital closes and a trainee moves to another hospital, the funding for the trainee’s position moves with the trainee to the new training hospital.
  • When a trainee moves to a new training hospital, the funds that move with the trainee are for all remaining years in the trainee’s program.
  • A hospital is eligible to accept a displaced trainee and to receive his/her funding, even if the hospital is at or over its number of capped positions.

Find more details on ECFMG’s website here.

Does PAMED have mental health resources for physicians or residents struggling with stress and anxiety?

Yes, the Foundation of the Pennsylvania Medical Society has a Physicians' Health Program. They can be reached at (866) 747-2255 or php-foundation@pamedsoc.org

How will physicians and residents obtain their records after Hahnemann Hospital closes?

The Federation of State Medical Boards (FSMB) is the custodian of Hahnemann University physician training records as of August 26, 2019. FSMB is in the process of transitioning and evaluating these records. To inquire about your training records, please email hahnemann@fsmb.org.

To learn more about training records of closed programs, go here : https://www.fsmb.org/closed-programs/gme-closed-programs-faqs/    

PAMED will provide updates here if there are any additional developments.

Are there Philadelphia-area attorneys willing to provide legal advice and services to those affected by the hospital’s closure?

Karen Davidson, Esq.
Law Offices of Karen E. Davidson, LLC
33 Rock Hill Road, Suite 210, Bala Cynwyd, PA  19004
610-940-4041
karend@kdavidsonlaw.com

Maureen McBride, Esq.
Lamb McErlane, P.C.
24 E. Market Street, West Chester, PA  19381
mmcbride@lambmcerlane.com
610-430-8000

Marleen Shields, Esq.
Fitzpatrick, Lentz, and Bubba, P.C.
4001 Schoolhouse Lane, Center Valley, PA 18034
Administrative Assistant:  Heather Long, ext. 392
hlong@flblaw.com
610-797-9000, ext. 376

Rafael M. Villalobos, Jr., Esq.
Buchanan Ingersoll & Rooney, PC
Two Liberty Place, 50 S. 16th Street, Suite 3200, Philadelphia, Pa 19102-3807
Rafael.villalobos@bipc.com
215-665-8700
  

PAMED can help you get an attorney to review and comment on the language and terms of your contract, including grounds for termination, non-compete clause, on-call requirements, and benefits.Learn More.


Has the American Medical Association (AMA) become involved in this issue?

Yes, the AMA has taken several steps:

  • On July 25, 2019, the AMA sent a letter to CMS, urging it to offer an increased level of support, and, where possible, waivers for any rules or regulations which create substantial barriers for impacted residents and fellows. 
  • On July 25, the AMA also sent a letter to the U.S. Department of State, U.S. Citizenship and Immigration Services, and Educational Commission for Foreign Medical Graduates urging them to waive the “grace-period” requirement under the J-1 physician visa program.
  • The AMA was one of several organizations, including PAMED, that contributed funds to the Philadelphia County Medical Society Educational and Scientific Trust which provided help with relocation costs for displaced Hahnemann residents and fellows.
  • An Ad Hoc Committee of displaced Hahnemann residents and fellows has been formed for purposes of engaging legal counsel to represent their interests in the Hahnemann bankruptcy proceedings, and any related court proceedings, specifically in relation to tail insurance coverage obligations. The AMA has agreed to underwrite the costs of this legal representation. Get details here.
How can I reach out to my local county medical society?

You can contact these county medical societies in the Philadelphia region using the telephone numbers below:

  • Philadelphia County Medical Society – (215) 563-5343
  • Delaware County Medical Society – (610) 892-7750
  • Montgomery County Medical Society – (866) 442-2364
  • Bucks County Medical Society – (866) 855-7664
  • Chester County Medical Society – (610) 827-1543
Patient Care Ombudsman

Suzanne Koenig was recently appointed as the Patient Care Ombudsman.  

Her contact information is as follows:

SAK Management Services, LLC
300 Saunders Road, Suite 300
Riverwoods, IL 60015
Phone: (847) 446-8400
Fax: (847) 446-8432
Email: skoenig@sakmgmt.com

Suzanne Koenig is represented by the law firm of Greenberg Traurig, LLP. Dennis Meloro and Nancy Peterman will lead the engagement for Greenberg.

Dennis Meloro: (302) 661-7395
Nancy Peterman: (312) 456-8410

The webpage is intended to be a resource for physicians. PAMED is not collecting payment from the attorneys or firms included on the site. PAMED’s inclusion of the contact information will not constitute PAMED’s endorsement of any of the services the attorney or law firm may provide.  PAMED will make no representation, guarantee or warrantee (express or implied) as to the legal services provide by any of the attorneys or firms listed on the site. PAMED is not a third-party to any agreement formed and will not pay for any of the services received as a result of the information provided on this site. 

The information contained on this webpage is for informational purposes only. This information is not intended and should not be construed to constitute legal advice. 


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