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If at First You Don’t Succeed / 69 more extensive coverage appeared in philadelphia newspapers, with reporters drawing on a diverse group of named and anonymous sources for perspectives on the implication of the merger. in addition to describing the major features of the merger, the stories discussed why the union had taken place in terms of perceived benefits to Hu and to AHerF, potential downsides for the two organizations, and the possible impact on other hospitals and medical schools in the philadelphia area. Benefits to AHERF. “the Hahnemann merger strengthened Allegheny’s growing network, sources said, by adding resources and prestige—and by eliminating a competitor. . . . Overnight, the new network became a local market leader in obstetrics and gynecology, psychiatry and pediatrics—and the market leader in cardiac catheterizations and open-heart surgery” (Gaul 1993b). Financial benefits to HU. the union with AHerF, paroo and trustee Add Anderson Jr. told reporters, would ensure the university’s future financial viability and, according to Anderson, save Hu about $20 million in the first year through administrative staff reductions and about $200 million over five years (Gaul 1993a; see also Beetham 1993). moreover, the press reported, some $40 million in initial funding would be provided for the new Hahnemann Foundation’s initiatives in public health and related research, teaching, and service areas (Gaul 1993a; see also Beetham 1993; Brooks 1993; George 1993; Will Hahnemann sale hurt city? 1993). Benefits to the HU and MCP medical schools and to medical education. “experts” contacted by Gaul said the consolidation of the two medical schools would create the second-largest medical school in the united states in terms of its student body and that the “consolidation of faculty and resources also would enhance the larger school’s reputation.” the former dean of the university of pennsylvania school of medicine, edward J. stemmler, mD, stated that “the merger offers a rare opportunity to consolidate services, benefit from cost efficiencies and rethink how one trains students” (Gaul 1993b). Potential downsides for AHERF. none of the newspaper coverage we collected mentioned possible problems for AHerF, beyond a health care consultant judiciously commenting that merging medical schools is “much harder than consolidating hospitals. . . . i’m not saying it can’t be done. . . . i just don’t quite know how you do it” (Gaul 1993b). Potential downsides for HU and MCP. perhaps because it already was part of the Allegheny system, the press had nothing to say about possible detrimental effects on mCp. As the new acquisition, three possible problem areas were mentioned for Hu amidst the generally positive coverage of the merger. As often happens in mergers, there could be layoffs and job cuts, which, some articles noted, might have a particularly severe effect on African Americans and other minority employees (Will Hahnemann sale hurt city? 1993; see also Beetham 1993; Brooks 1993; Gaul 1993a; George 1993). there would be stress for faculty and staff, as paroo recognized in his november 17 talk. And though not openly discussed by any of the principals 70 / Chapter 3 involved in the merger, an editorial noted the possibility that Hahnemann would be “merged out of existence” (Will Hahnemann sale hurt city? 1993). Implications for Philadelphia and its health care institutions. Hospital officials contacted by the press had mixed reactions to the merger, recognizing it both as a major strategic move by AHerF and as a step that could weaken their own institutions’ market positions. in the words of the subhead for Gaul’s november 21 story, “Hahnemann’s merger dwarfs—and frightens—many local rivals.” the president of philadelphia’s presbyterian medical Center admitted, “We are cautiously worried,” while the president of Crozier-Keystone Health system in suburban philadelphia recognized the merger as “probably as bold and striking an initiative . . . as . . . seen in this town in many years” and acknowledged that “this is a wake-up call for all.” unnamed industry analysts contacted by Gaul said that “if anyone can make all this work, it’s sherif Abdelhak . . . ; many analysts refer to Abdelhak as a ‘genius’ when it comes to organizing and developing successful health networks ” (Gaul 1993b). the broadest and most dire concerns about the merger were expressed in a Philadelphia Business Journal editorial, “Will Hahnemann sale hurt city?” to the editorialist the answer to this question was a likely yes. in addition to making AHerF a “formidable factor in the local health-care community,” the writer pointed out, the merger “will also mean that the city will lose one medical...

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