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Obamacare be so good, North Philadelphia Health System enters bankruptcy
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Chimpanella
Mar 28, 2017, 6:00:02 AM3/28/17
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North Philadelphia Health System, which stopped paying numerous
vendors in 2015 and then closed St. Joseph's Hospital last March
after state officials halted a long-running subsidy, filed for
bankruptcy protection late last week in Philadelphia.
NPHS said it will continue to provide drug and alcohol services
and psychiatric care at Girard Medical Center, at Eighth Street
and Girard Avenue.
"While the behavioral health business will become self-
sustaining and will operate on a break-even basis, NPHS lacks
the financial ability to pay legacy liabilities from its now-
shuttered acute-care hospital," NPHS said in a statement.
The tax-exempt organization said it owed $24.8 million to its 30
largest unsecured creditors. Independence Blue Cross topped the
list, with $10.87 million owed for employee benefits.
NPHS officials told Independence as recently as last summer that
they intended to repay the health insurance company in full,
according to IBC spokeswoman Donna Crilley Farrell.
Todd Strine, chief financial officer of Keystone Quality
Transport, said his company is owed $135,000, with most of the
unpaid bills from Jan. 1 to Sept. 15, 2015, when Keystone
stopped providing services to NPHS because it had not received a
substantial payment since early that year.
Keystone was waiting for signatures on an agreement to receive
full payment when NPHS filed for bankruptcy, Strine said.
In a court filing Monday, NPHS said its secured debt amounted to
$1.9 million on an $8.5 million revolving credit line and a
balance of $11 million on a federally insured mortgage, counting
about $3 million in cash held by the trustee on the mortgage.
The system filed for Chapter 11 bankruptcy protection right
before the end of the year because it could not afford a
$400,000 mortgage payment due Jan. 1, said NPHS' bankruptcy
attorney, Lawrence G. McMichael, of Dilworth Paxson. The board
decided it wanted to be in bankruptcy before defaulting on the
mortgage to protect the cash held by the trustee, McMichael said.
Formed in 1990 out of two bankrupt organizations, NPHS was on
political life support, in the form of special state aid since
1993 and a 1997 bailout through a $24 million federally insured
mortgage, for decades until the Pennsylvania Department of Human
Services in 2015 decided to pull the plug.
NPHS was unusual among tax-exempt health systems in that it had
a paid chairman, Domenic Sabatini, who was managing director of
Penn's Landing Corp. from 1980 to 2003 and in the orbit of
former State Sen. Vincent J. Fumo. Sabatini was paid $197,401 in
2014.
NPHS paid its chief executive, George Walmsley III, $670,004 in
2014. The organization had $107.4 million in revenue in the year
ended June 30, 2015, which means that Walmsley was the highest-
paid health-system CEO in the Philadelphia region relative to
the revenue of his organization, according to the latest 990 tax
forms.
http://www.philly.com/philly/business/North-Philadelphia-Health-
System-in-bankruptcy.html
vendors in 2015 and then closed St. Joseph's Hospital last March
after state officials halted a long-running subsidy, filed for
bankruptcy protection late last week in Philadelphia.
NPHS said it will continue to provide drug and alcohol services
and psychiatric care at Girard Medical Center, at Eighth Street
and Girard Avenue.
"While the behavioral health business will become self-
sustaining and will operate on a break-even basis, NPHS lacks
the financial ability to pay legacy liabilities from its now-
shuttered acute-care hospital," NPHS said in a statement.
The tax-exempt organization said it owed $24.8 million to its 30
largest unsecured creditors. Independence Blue Cross topped the
list, with $10.87 million owed for employee benefits.
NPHS officials told Independence as recently as last summer that
they intended to repay the health insurance company in full,
according to IBC spokeswoman Donna Crilley Farrell.
Todd Strine, chief financial officer of Keystone Quality
Transport, said his company is owed $135,000, with most of the
unpaid bills from Jan. 1 to Sept. 15, 2015, when Keystone
stopped providing services to NPHS because it had not received a
substantial payment since early that year.
Keystone was waiting for signatures on an agreement to receive
full payment when NPHS filed for bankruptcy, Strine said.
In a court filing Monday, NPHS said its secured debt amounted to
$1.9 million on an $8.5 million revolving credit line and a
balance of $11 million on a federally insured mortgage, counting
about $3 million in cash held by the trustee on the mortgage.
The system filed for Chapter 11 bankruptcy protection right
before the end of the year because it could not afford a
$400,000 mortgage payment due Jan. 1, said NPHS' bankruptcy
attorney, Lawrence G. McMichael, of Dilworth Paxson. The board
decided it wanted to be in bankruptcy before defaulting on the
mortgage to protect the cash held by the trustee, McMichael said.
Formed in 1990 out of two bankrupt organizations, NPHS was on
political life support, in the form of special state aid since
1993 and a 1997 bailout through a $24 million federally insured
mortgage, for decades until the Pennsylvania Department of Human
Services in 2015 decided to pull the plug.
NPHS was unusual among tax-exempt health systems in that it had
a paid chairman, Domenic Sabatini, who was managing director of
Penn's Landing Corp. from 1980 to 2003 and in the orbit of
former State Sen. Vincent J. Fumo. Sabatini was paid $197,401 in
2014.
NPHS paid its chief executive, George Walmsley III, $670,004 in
2014. The organization had $107.4 million in revenue in the year
ended June 30, 2015, which means that Walmsley was the highest-
paid health-system CEO in the Philadelphia region relative to
the revenue of his organization, according to the latest 990 tax
forms.
http://www.philly.com/philly/business/North-Philadelphia-Health-
System-in-bankruptcy.html
Mr. B1ack
Mar 28, 2017, 8:33:54 AM3/28/17
to
On Tue, 28 Mar 2017 11:52:21 +0200 (CEST), "Chimpanella"
<chimp...@naacp.org> wrote:
>North Philadelphia Health System, which stopped paying numerous
>vendors in 2015 and then closed St. Joseph's Hospital last March
>after state officials halted a long-running subsidy, filed for
>bankruptcy protection late last week in Philadelphia.
When Trump said OCare was set to "explode" (or "implode")
<chimp...@naacp.org> wrote:
>North Philadelphia Health System, which stopped paying numerous
>vendors in 2015 and then closed St. Joseph's Hospital last March
>after state officials halted a long-running subsidy, filed for
>bankruptcy protection late last week in Philadelphia.
the other day he was NOT lying. After just a few short years
the inflation curve on premiums/deductables/incidentals has
reached unsustainable levels. It's beyond the "unAffordable
Care Act" now ... into "NO Care Act" territory instead - just
plain unusable. I'd say this is the last year it's gonna exist.
It HAS to be replaced by a better plan or plans that will be
resistant to price inflation.
Wasn't all that long ago that most Americans could get
an affordable private/corporate health policy. "The poor"
were kinda getting the short end of the stick, mostly
relying on 'charity' or 'indigent' funds and whatever MedicAid
would do. THAT situation can be fixed by the Fed in a number
of ways - but OCare WASN'T ONE OF THEM.
Add a few laws aimed at encouraging competition and
punishing profiteering and regular HMOs could be even
cheaper than before.
The leftypress had better get off the whine about what
TrumpCare 2.0 may not cover ... because OCare will
be covering *nothing* for most Americans real soon now.
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