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North Philadelphia Health System Files For Bankruptcy


  As 2016 drew to a close, the North Philadelphia Health System (NPHS) filed for Chapter 11 bankruptcy protection. This does not necessarily mean that the NPHS will cease operations. Chapter 11 of the United States Bankruptcy Code merely provides an entity protection from creditors during a period of reorganization.

  The NPHS was established in 1990 when the Girard Medical Center and St. Joseph’s Hospital combined forces after simultaneously filing for bankruptcy. In 2015, the health system sold an underused building and a parking lot for $4.5 million in an effort to recover from the debt it had incurred the previous year. It was forced to close St. Joseph’s Hospital in March 2016 after the state’s decision to reduce funding for the organization. Almost 700 people lost their jobs.

  According to Becker’s Hospital Review, both the assets and the liabilities of the NPHS lie somewhere between $10 million and $50 million. The case is currently pending in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. As of now, the Girard Medical Center and the Goldman Clinic, both NPHS-run facilities, are still open.

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