Hahnemann University Hospital lays off 175 employees

PHILADELPHIA (WPVI) -- Hahnemann University Hospital laid off 175 employees on Thursday.

The hospital, which is owned by American Academic Health System, cites declining patient numbers and revenue for the need to reduce its workforce.

Hahnemann said it is suffering monthly losses of $3 million to $5 million.

A total of 65 nurses, 22 service and technical employees, and 88 non-union workers will be laid off.

The layoffs are effective immediately.

A statement from the hospital reads:

"Hahnemann Hospital is the latest example of the ongoing health care crisis that has impacted every hospital in Philadelphia, all of whom struggle to obtain fair compensation for the safety net services they provide. We are proud to serve our community, but the reality is that Hahnemann faces severe financial challenges that threaten its ability to survive. In response, the Hospital has undertaken a comprehensive turnaround plan that requires a wide range of difficult decisions, including the need to reduce the size of our workforce to align to current patient volumes. For these reasons, effective today the Hospital will implement a workforce reduction of 175 employees including nurses, support staff, and managers."

Drexel University College of Medicine is affiliated with Hahnemann Hospital. The University released this statement:

"Drexel University College of Medicine continues to have an important academic affiliation and collaborative relationship with Hahnemann University Hospital, which is owned by American Academic Health System (AAHS). Although Hahnemann is a key resource for the clinical education of Drexel's medical students, the College of Medicine has academic affiliations with more than 20 clinical training sites. Drexel faculty continue their commitment to providing the best possible training for resident physicians employed by AAHS.

Drexel cannot comment on the business affairs of AAHS, as Drexel's financial and business operations are independent of the hospital. It is Drexel's intention to maintain its current level of patient care and educational activities at the hospital.

The College of Medicine's focus is always on the best interests of its patients, students, faculty and staff."