Judge ready to rule if Hahnemann Hospital can sell residency slots or not

Mike DeNardo
September 04, 2019 - 6:54 pm

Andrew Kramer/KYW Newsradio

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WILMINGTON, Del. (KYW Newsradio) — After a daylong hearing, a federal bankruptcy judge in Wilmington says he'll rule Thursday on whether Hahnemann Hospital can sell its medical residency program.  

Judge Kevin Gross says he'll rule at 3:15 Thursday afternoon on whether Hahnemann University Hospital can sell its 570 residency slots to a consortium of six area health systems for $55 million.  

That's money the hospital could use to pay its creditors, but a sale would also extinguish any hope that a last-minute bidder would step in to keep the hospital open.  

The Centers for Medicare and Medicaid Services, which reimburses hospitals for the cost of training doctors, opposes the sale. A CMS attorney argued the residency sale was against the law, saying Hahnemann's Medicare agreement can't be transferred.  

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CMS also wanted the ability to recoup Medicare overpayments.

The judge asked CMS and Hahnemann to try to broker an agreement over the midday court break, but that didn't happen.