Drexel University’s Board of Trustees voted unanimously on Thursday to assume permanent ownership of MCP Hahnemann University School of Medicine and its affiliated nursing and public-health schools.
Drexel had been managing MCP Hahnemann, the nation’s largest private medical school, since 1998, when the Allegheny Health System declared bankruptcy. (See an article from The Chronicle, October 22, 1999.)
Tenet Healthcare Corporation bought the bankrupt system, which included eight area hospitals, and paid Drexel to manage the medical university.
The decision was controversial at Drexel; some felt it would be a financial drag and a distraction for a university that was on the upswing. Drexel, which emphasized engineering and technology, had no previous experience in medical education.
Drexel agreed to oversee MCP Hahnemann for a few years while it determined whether it could turn the debt-ridden institution into an asset. This week, it decided that it could, and approved a merger between the two universities.
“This is a historic moment that will forever change Drexel,” the university’s president, Constantine Papadakis, said after the vote. “This is the proudest moment of my presidency.”
After losing about $50-million in its first year under Drexel, the medical college is expected to break even financially in the 2002 fiscal year. In July, it will officially become Drexel University’s MCP Hahnemann College of Medicine.
The exact terms of Drexel’s 20-year affiliation agreement with Tenet were not disclosed, but a Tenet spokesman said that his company would continue to cover the cost of medical services provided by teaching faculty members.
“Drexel will provide the stability and technological resources needed to preserve and enhance the health-sciences enterprise,” said C.R. Pennoni, chair of Drexel’s Board of Trustees. “In turn, the merger enriches Drexel’s academic offerings and creates new opportunities through research synergies.”
Drexel’s trustees will appoint a new board to oversee the medical school. The school will continue to be affiliated with Tenet’s Philadelphia hospitals, where faculty members teach and practice, and where medical students receive their training.
Drexel, which is known for its technology focus, has undertaken such new efforts at the medical school as wireless classrooms and the use of handheld digital organizers for patient care.
The president of Drexel’s Faculty Senate, Jacqueline Mancall, a professor of information science, issued a cautious statement of support. She said that she and her colleagues were “intrigued” by the opportunities the merger created, but would continue to monitor the impact it might have on tenure and other academic programs.
Background articles from The Chronicle: