North Philadelphia Health System notified Pennsylvania health and labor regulators that it will close its struggling long-term acute-care unit within Girard Medical Center, Philadelphia. About 100 employees will be laid off by late April, though the total remains uncertain, the system said in regulatory filing. George Walmsley III, president and CEO of the two-hospital system, said he was saddened by the decision, but operating losses in the 84-bed LTAC unit jeopardized the system's financial stability.
Philly system plans to close LTAC unit
North Philadelphia Health System, which also includes St. Joseph’s Hospital, lost $1.3 million on $110 million in revenue for the year that ended in June, Walmsley said. He credited the loss to a growing number of uninsured and the struggling long-term acute-care unit, which has seen admissions drop to a daily average of 35 patients with changes to Medicare reimbursement. To avoid layoffs, the system cut management and physician salaries by 12.5% and scaled back the work week to 35 hours for employees, he said.
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