St. Christopher’s Hospital
Based in Philadelphia, Pennsylvania, Philadelphia Academic Health Systems, LLC (“PAHS”) and its operating subsidiaries St. Christopher’s Healthcare, LLC and affiliated physician practice groups (“St. Christopher’s” or the “Hospital”) is a fully accredited children’s hospital providing world-class pediatric care in a child-friendly, family-oriented environment. St. Christopher’s is widely regarded as one of the best children’s hospitals in the nation, having won numerous awards for exceptional pediatric and emergency care. Among numerous other services, St. Christopher’s operates a Level I Pediatric Trauma Center, a Level III Neonatal Intensive Care Unit, and a Verified Pediatric Burn Center.
Historically, the Hospital has achieved strong financial performance with consistent patient volume. However, starting in January 2018, St. Christopher’s cash flow was used to support the losses of Hahnemann University Hospital (“Hahnemann”), another wholly-owned subsidiary of PAHS. By July 2019, St. Christopher’s began facing liquidity constraints as a direct result of funding Hahnemann’s operating losses and was forced to seek relief under Chapter 11 of the U.S. Bankruptcy code along with PAHS and its other operating subsidiaries.
SSG was retained to explore the strategic alternatives available to PAHS, St. Christopher’s, Hahnemann, and the physician practice groups associated with each hospital. Shortly thereafter, SSG conducted an expedited marketing process and solicited offers from potential strategic and financial parties. After an extensive marketing process and discussion with potential interested parties, Tower Health and Drexel University’s $50 million bid for St. Christopher’s was determined to provide the estate and all stakeholders with not only the best recovery, but also the preferred outcome for the future for such a critical children’s hospital. Tower Health and Drexel will work with the physicians, medical professionals, students, residents, fellows, and staff of St. Christopher’s to continue their vital work on behalf of the children and families of Philadelphia.