Allegheny ED staff will likely survive massive physician layoffs
September 1, 1998
Allegheny ED staff will likely survive massive physician layoffs
Philadelphia, PA-Emergency physicians at hospitals operated by financially troubled Allegheny Health, Education, and Research will apparently not be affected by the massive medical staff layoffs planned by the large Pittsburgh-based integrated system.
The layoffs reflect the deep problems some integrated systems are undergoing in part due to the financial turmoil created by rising costs and low managed care reimbursements. In July, Allegheny and four of its subsidiary organizations filed for protection under Chapter 11 of the U.S. Bankruptcy Act.
In particular, the bankruptcy affects nine hospitals affiliated with Allegheny University throughout the state, including Allegheny University of the Health Sciences in Philadelphia. In conjunction with the bankruptcy filing, the organization announced that it plans to sell all nine of the Allegheny University-affiliated hospitals to Nashville, TN-based Vanguard Health Systems.
However, emergency physicians may emerge from the restructuring unscathed. Bob McNamara, MD, medical director of the emergency medicine residency program at Allegheny University of the Health Sciences told The Managed Care Emergency Department that he has not heard of any impending cutbacks in emergency medicine and believes that emergency physicians will be spared any reductions in ranks.
"The emergency departments are all viable and paying for themselves, and that's with a strong surplus including residents on the medical staff. As long as we are still viable, I think we'll be okay," McNamara says.
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