Bankrupt healthcare giant closing two hospitals in Pennsylvania
After months of uncertainty, employees received emails on Monday letting them know that the hospitals would close and more than 2,600 people would be laid off. Despite last-minute cash influxes in recent months, Prospect said it had made the 'extremely difficult decision' and would begin moving patients as soon as Wednesday.
Some services already began moving out of the hospitals earlier this month. The hospitals will then cease elective inpatient admissions and trauma, surgical, obstetrics and gynecology, burn, behavioral health, oncology, and outpatient services. Patients with complex needs will then be moved to other facilities. Paul Rundell, Prospect's chief restructuring officer, said in a statement: 'We've worked tirelessly with the Pennsylvania Attorney General and other parties to do everything possible to prevent this outcome.
'Unfortunately, we were unable to reach a viable alternative.' He added that the focus remains on seamlessly transitioning patients to other health facilities so that they can continue to receive the critical, uninterrupted care they require, and supporting employees as they look for other work. Prospect already closed nearby Delaware County Memorial Hospital and Springfield Hospital in 2022. Once Crozer-Chester Medical Center and Taylor Hospital close, the 577,000 residents of Delaware County will only have two inpatient community hospitals.
Pennsylvania state senator Tim Kearney expressed his devastation at the closures. It is a 'devastating and disgraceful blow to our communities, our health care workers, and every patient who has ever relied on our local hospital system,' he said. Following the announcement, Delaware Country declared a seven-day disaster emergency to help provide immediate support to those impacted, CBS News reported.
Governor Shapiro said on Monday: 'Prospect Medical Holdings, the for-profit owner of Crozer Health, pillaged these hospitals for their own gain – and today, we see the result of their greed and mismanagement with the announced closure and loss of critical health care services for the people of Delaware County.' Prospect is not the only major hospital chain which has filed for bankruptcy in recent years. Landmark, which operates six specialty hospitals across Florida, Missouri and Georgia, filed for Chapter 11 bankruptcy in March.
It is not yet known whether Landmark plans to close any hospitals as part of its bankruptcy proceedings, or if facilities will continue to operate as normal. Problems at Landmark also came less than a year after the collapse of Steward Health Care, a major hospital system backed by private equity. The Steward bankruptcy drew government scrutiny and prompted debate about the regulation of private-equity-owned hospitals whose failure could lead to devastating consequences for local communities.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Edinburgh Live
a day ago
- Edinburgh Live
Edinburgh woman 'forced to move out' of home after 'mouse crawls up shoulder'
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info An Edinburgh woman has detailed how her home was overrun with vermin as mice nested in her bed and climbed over her body. Maggie Wolohan, 46, of Clovenstone Gardens, is pleading with her housing association to move her after she came face-to-face with a rodent in her bedroom. Prospect visited her home and fumigated the public stairwell as well as filled holes with steel wool in the flat. But Maggie believes this has not gone far enough and the mice will return. The issue became so bad she claims she had to move in with her brother on Clovenstone Drive for 12 weeks. She has accused her landlord of not taking her concerns seriously while adding the ordeal has caused her stress. 'I've been plagued with mice,' Maggie said. 'It is about the third or fourth year in a row now. Join Edinburgh Live's Whatsapp Community here and get the latest news sentstraight to your messages. 'I had to move out and go and live with my brother and only recently moved back in because of it. They had began to nest in my bed. 'We put traps down but it did not work and contacted Prospect who sent a man out. He was lovely and filled the holes he could see with steel wool but they didn't fumigate my flat. 'Prospect fumigated the stair but the problem is the mice are in the flats. Back in May I was sat in my bed, playing a game on my phone, when a mouse had crawled up from the bed, onto my arm and up my shoulder - I s**t myself. 'That night I moved out. I was at my brother's for 12 weeks and it was really disruptive as I suffer from epilepsy. 'I've had to get rid of my bed and all the stuff underneath it and have not been compensated. All I got was an advance on my Universal Credit and I have to pay that back. 'They will come back because my flat was not fumigated and I've found more holes in my bathroom. I don't feel like Prospect have taken me seriously enough. 'This has really triggered my health and stressed me right out.' Maggie's brother, Duncan Wolohan, 53, of Clovenstone Drive, has also experienced his own problem with vermin. He and his wife claim to have been kept up at night by the sound of scurrying rats behind their bedroom wall. 'We noticed the rats a couple of years ago,' he said. 'We think they have come in through a hole in the back or are coming down from the roof. 'My wife can hear them scurrying up and down but to be honest we have not heard them for a few weeks. She could hear them in the walls in our bedroom at night, it was this scratching noise. 'We complained about the issue and they said they found holes but they are worried they are digging under the ground to get into the block. Other people a couple of blocks down are definitely worse affected. 'I think Prospect have done as much as they can, they can only fill the holes they see. They've also been up in the attic to see what was up there.' Despite Duncan feeling the issue may have been resolved, his wife had other thoughts. She believes the rats may be 'hibernating' and will return when the weather becomes colder. 'At the beginning when we heard them, Prospect seemed uninterested,' she said. 'That was until they got so many calls last year to do something about the rats. . 'Pest control said they were digging underneath the home. I think more traps should be laid as they will come back. I want a proper investigation into what is causing them.' Sign up for Edinburgh Live newsletters for more headlines straight to your inbox Prospect said they have notified their team about the issues and will reach out to the impacted residents.
NBC News
14-06-2025
- NBC News
Anne Wojcicki to buy back 23andMe and its data for $305 million
Anne Wojcicki, the co-founder and former CEO of 23andMe, has regained control over the embattled genetic testing company after her new nonprofit, TTAM Research Institute, outbid Regeneron Pharmaceuticals, the company announced Friday. TTAM will acquire substantially all of 23andMe's assets for $305 million, including its Personal Genome Service and Research Services business lines as well as telehealth subsidiary Lemonaid Health. It's a big win for Wojcicki, who stepped down from her role as CEO when 23andMe filed for Chapter 11 bankruptcy protection in March. Last month, Regeneron announced it would purchase most of 23andMe's assets for $256 million after it came out on top during a bankruptcy auction. But Wojcicki submitted a separate $305 million bid through TTAM and pushed to reopen the auction. TTAM is an acronym for the first letters of 23andMe, according to The Wall Street Journal. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement. 23andMe gained popularity because of its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion. The company struggled to generate recurring revenue and stand up viable research and therapeutics businesses after going public, and it has been plagued by privacy concerns since hackers accessed the information of nearly seven million customers in 2023.
Daily Mirror
08-05-2025
- Daily Mirror
WeightWatchers gives UK slimmers major update after filing for bankruptcy in US
Founded in 1963, WeightWatchers has helped millions of people on their weight loss journeys via memberships, diet meals, memberships and books but has now field for bankruptcy WeightWatchers, the once-dominant diet brand backed by celebrities including Oprah Winfrey, has filed for bankruptcy in the United States. The company became the highest-profile casualty of the explosive rise in weight-loss drugs that have rapidly redefined the wellness industry. WW International Inc., the company behind the 62-year-old brand, announced it has entered Chapter 11 proceedings in Delaware bankruptcy court. It is aiming to shed more than £860 million in debt and restructure operations to focus on prescription weight-loss drugs via its telehealth business, WeightWatchers Clinic. Customers in the UK, of which there are approximately two million each year, have been assured that it will be "business as usual". A UK spokesperson told the Mirror: "WeightWatchers took strategic action to eliminate approximately $1.15 billion (£860 million) in debt, significantly strengthening its financial foundation to further invest in its growth strategy and better serve its millions of members around the world. "WeightWatchers remains business as usual. There will be no impact to members or the plans they rely on to support their weight management goals. All offerings and services, including workshops, the app, and access to telehealth services, will continue to operate as usual, with no interruptions." While specific figures vary, business data portal Statista reports that around 1.3 million people used Weight Watchers chilled or frozen ready meals in 2020 In the UK. The bankruptcy filing in the US comes amid a sharp decline in revenue and a collapse in its stock price. Once worth more than £5 billion, the company's market value has fallen to just £8.71 million. Its shares have traded under 75p since February. The brand's struggles accelerated after Oprah Winfrey, its most high-profile investor and ambassador, resigned from the board in February 2024 - two months after publicly admitting she had been using weight-loss drugs. The US chat show queen had been a key figure in WeightWatchers' image and marketing since joining the board in 2015. The company says it has the backing of nearly three-quarters of its creditors and expects to emerge from bankruptcy within 45 days. As part of the restructuring, it plans to pivot further into the pharmaceutical sector by selling 'GLP-1' weight loss drugs Wegovy and Mounjaro as well as diabetic medication Ozempic, which buyers have used to lose weight. Once a leader in the diet industry - offering calorie-counting tools, frozen meals, books and in-person support groups - WeightWatchers has found itself rapidly eclipsed by the popularity of GLP-1 drugs. They suppress appetite and lead to significant weight loss with minimal lifestyle changes. In 2023, the company acquired the firm Sequence for £79 million and rebranded it as WeightWatchers Clinic, offering virtual access to prescriptions. While the drug segment's revenue grew 57 per cent year-on-year in the first quarter to £22.1 million, total company revenue fell 10 per cent, and losses deepened. WeightWatchers' leadership has seen turmoil during the decline. CEO Sima Sistani resigned in September 2024. Interim chief executive Tara Comonte - a former Shake Shack burger executive and board member - is now leading the bankruptcy process. In a statement, Comonte said: 'As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed and holistic solutions has never been stronger.' But industry analysts say the company's pivot may be too late. 'The rise of GLP-1 drugs has upended the traditional weight-loss industry, and WeightWatchers is the first major casualty,' said Lale Akoner, global market strategist. 'This isn't just a company failure, it's a wake-up call for the entire wellness sector.' The company has also faced challenges in appealing to younger consumers. In 2018, WeightWatchers acquired the health app Kurbo in an effort to reach a new generation. The following year, it launched the platform publicly, targeting children aged eight to 17 with the goal of promoting 'healthy habits.'
