Writer: Caty Hirst
2 min read February 2022 — Even before the COVID-19 pandemic, Philadelphia’s hospitals were closing — and the most vulnerable are those that serve the area’s poorest residents. The COVID-19 pandemic and economic fallout has only exacerbated the challenges hospitals are facing, with two Philadelphia-area hospitals closing as recently as December 2021.
Two hospitals in Chester County, both owned by Pennsylvania-based Tower Health, closed after sales for the facilities broke down, Tower Health announced. Jennersville Hospital, located in West Grove, closed on Dec. 31, 2021, and Brandywine Hospital, located in Caln Township, closed Jan. 31, 2022.
“For sixteen months, Tower Health pursued every viable option to secure the future of Brandywine and Jennersville Hospitals, including extensive exploration of potential new owners. When we announced a definitive agreement for Canyon Atlantic Partners to acquire both hospitals, we believed we had finally found a solution that would preserve Brandywine and Jennersville as acute care hospitals. …We are deeply saddened by this turn of events, however, no viable options remain for the continued operation of these facilities,” Tower Health said in a statement.
Mercy Philadelphia Hospital nearly closed in 2020, going so far as to notify city officials in February 2020 that it would begin to wind down operations. However, Penn Medicine took the initiative to take over operations of the hospital. The scare came after the closure of the Hahnemann University Hospital in 2019. The 496-bed hospital primarily serviced Philadelphia’s poor residents. The closure of Hahnemann University Hospital marked one of the first closures of a top urban hospital but was a continued trend of hospitals across the country closing in general, with 136 rural hospitals having closed in the nation since 2010.
Threats are on the horizon for others, and the challenges facing hospitals are not unique to Philadelphia, especially as the COVID-19 pandemic accelerates already-existing challenges for hospitals: namely, a severe staff shortage and profitability of the business model.
Hospital revenue losses, felt most acutely in poor and rural areas, were staggering during the pandemic years, as hospitals were forced to put money-making elective surgeries on hold and absorb incredible costs related to the pandemic, including surge staffing and salary increases to attract new staff; sicker and, therefore, costlier patients; enhanced cleaning procedures and additional personal protective equipment for all staff members. The American Hospital Association’s Hospital Outlook is not positive, with hospitals nationwide losing an estimated $54 billion in net income over 2021.
Becker’s Hospital Review announced in January 2022 that at least 14 hospitals across the country had permanently or temporarily closed due to a lack of staff, including Springfield Hospital in Springfield, Pennsylvania (owned by Crozer Health, based in Chester), which temporarily suspended its emergency department, pathology lab and medical imaging services starting Jan. 14. Maine Line Health, which services Philadelphia, put on hold all non-emergency surgeries effective Jan. 1, due to staffing shortages.
Also due to staffing shortages, Pennsylvania state officials announced on Jan. 31 a plan to open up additional acute care space in area nursing homes, including facilities in Allegheny County, Blair County and Clarion County, Becker’s Hospital Review reported.
Hospital systems are often turning to mergers and acquisitions to survive but such moves are not always endorsed by state officials. In January 2021, the state of Pennsylvania dropped a legal challenge to the proposed merger of the Philadelphia-based Jefferson Health and Einstein Health Network. The initial complaint, filed by the Pennsylvania Attorney General, said the merger would reduce competition within the county.
However, the American Hospital Association said in a statement that policymakers should note that antitrust enforcement in the health space needs to also consider “the long-term viability of healthcare facilities and their ability to provide quality and reliable healthcare and access to all members of communities.”
