October 22, 1998 |
The Allegheny health system beefed up its legal defense team yesterday in response to a broad government investigation that now includes a criminal probe. Allegheny asked U.S. Bankruptcy Court Judge Bruce McCullough to widen the scope of responsibilities and the doubling to $500,000 the retainer paid to the law firm of Hahn Loeser & Parks. McCullough must approve such moves and expenditures since the Pittsburgh-based health system filed for Chapter 11 bankruptcy protection on July 21, listing $1.3 billion in debts.
August 6, 1998 |
The Allegheny crisis is a vivid example of the seismic shifts in Greater Philadelphia's health-care economy that the Pennsylvania Economy League warned about nearly 2 1/2 years ago. Nothing that has happened since the report's release - including the proposed acquisition of Allegheny's hospitals - has changed the fundamentals of the situation. Allegheny's plight is symptomatic of major stress in the entire hospital industry. In 1996, the largest regional hospitals sustained an operating loss of $222 million dollars, and only 13 of 51 didn't lose money on an operating basis.
October 5, 1998
Vince Mariniello is one of 80,000 creditors who will be lucky to get 15 percent of the $200,000 he is owed by the bankrupt Allegheny health system for floors installed by his Grays Ferry company. As Daily News writer Don Russell reported last week, Mariniello also is an Allegheny creditor of another sort. He is a member of the Variety Club, which raised $1.5 million for the pediatric wing at Hahnemann Hospital - which now, like the other Allegheny institutions in this area, becomes part of Tenet, a for-profit chain.
March 19, 2000
Pennsylvania's attorney general last week filed the first criminal charges against the leaders of the defunct Allegheny health system, alleging that they misspent $52.4 million in restricted endowments, orchestrated illegal political contributions, and in one case gave away $50,000 in Allegheny funds for the renovation of a high school locker room. A grand jury in Pittsburgh brought felony theft and misdemeanor charges Wednesday against former chief executive Sherif S. Abdelhak, 54; former chief financial officer David McConnell, 45; and former legal counsel Nancy Wynstra, 58. All three face maximum sentences of 10 to 20 years.
September 16, 1998 |
Vanguard Health may be second-guessing its $460 million bid for the bankrupt Allegheny health system, prompting speculation that the Nashville company may lower its offer or drop out of the bidding, several sources said yesterday. Such a move heightens the uncertainty surrounding Allegheny's already shaky future, adding to the ripple effect that promises to roil the entire health-care system - the region's largest employer and economic generator. "I haven't heard from Vanguard in a long time," said Henry Nicholas, president of the Hospital and Healthcare Employees Union District 1199C.
September 1, 2002 |
Stephen Borland helped keep up Allegheny's mainframe computer before the health giant went bust five years ago, and he still keeps in touch with nearly two dozen former employees. His e-mail lighted up with emotional intensity last week when Allegheny health system's former CEO, Sherif S. Abdelhak, was sentenced to 11 1/2 to 23 months in a work-release facility for raiding $30 million in medical endowments. Only 11? months or less! This guy should be spending life in prison.
July 17, 1998
Whoa. The air of crisis surrounding Allegheny health system's huge financial problems should not turn into a panicked stampede to accept any Allegheny scheme to avoid bankruptcy. Rumors are swirling and employees are freaked out, but there are more options than the artificial either/or that has been set up: Either Allegheny is allowed to dump some or all of its nine Philadelphia hospitals to a for-profit bidder of its choosing, it is implied, or it will go bankrupt, which will in turn imperil its medical school since $100 million in federal funding would be jeopardized.
January 18, 2002
Just think of it as the Philadelphia region's Enron scandal. Before it collapsed into bankruptcy, the Allegheny health system was: Losing $1 million a day. Firing hundreds of workers. Raiding charitable endowments for millions of dollars. Covering its tracks with public relations spin and creative bookkeeping. From the looks of it, the Pittsburgh-based pirates who ran the nine-hospital system did everything but unfurl the skull and cross bones. The Allegheny collapse remains personal and painful for some folks around here - even as the mopping-up operation from the 1998 bankruptcy gathered steam this week.
July 6, 1999 |
Dr. Joel J. Roslyn, surgeon, teacher, devoted father and behind-the-scene Samaritan during the collapse of the Allegheny health system, died Sunday of melanoma at his East Falls home. He was 48. Dr. Roslyn was among the first of many young medical talents to be recruited by Allegheny, which in 1988 began expanding into the Philadelphia region from Pittsburgh. In 1992, he left the University of California at Los Angeles, where he had spent 15 years, to become chairman of surgery at the Medical College of Pennsylvania (MCP)
October 24, 1998 |
What Allegheny did here was a terrible thing. A billion and a half dollars run up in debt. Thousands of jobs put in jeopardy with both physicians and patients at risk. The entire face of health care in the region changed, irrevocably and not for the better. Without a strong manager, Allegheny's medical school may be forced to close. Now there are new allegations that some of the research and endowment money was used to pay operating expenses of the floundering Allegheny empire or used for other purposes entirely.