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Axios
23-04-2025
- Health
- Axios
Crozer Health closure leaves major health care gap in Philly suburbs
The largest health system in Delaware County began closing two hospitals Wednesday after failing to find a buyer amid bankruptcy proceedings. Why it matters: Crozer Health's shutdown will lead to thousands of layoffs and a major shakeup for health care across the region. State of play: Taylor Hospital in Ridley Park and Crozer-Chester Medical Center in Upland are slated to shutter in May, per a bankruptcy plan approved by a federal judge in Texas on Tuesday. Prospect Medical Holdings, the California-based private company that owns Crozer Health, is winding down services and transferring patients. Crozer will lay off 2,651 employees. By the numbers: Taylor Hospital and Crozer-Chester took in more than 78,000 emergency room visits combined annually, per the company's website. They also treated a combined 54,000 inpatients and outpatients a year. What they're saying: The decision is "going to devastate our entire community," Peggy Malone, union president for Crozer-Chester Nurses Association, told WHYY. The other side: Prospect Medical's chief restructuring officer Paul Rundell said in a statement the company "recognizes the impact this action will have on patients as well as team members" but it was "unable to reach a viable alternative." The big picture: The closures will force patients to seek care at nearby hospitals, including Riddle Hospital in Media, Penn Presbyterian Medical Center in Philly, and Mercy Fitzgerald Hospital in Darby. That will tack on 30-40 minutes of extra travel time to get care for some patients, per FOX29. Many of these providers say they're already seeing a surge of new patients. Trinity Health Mid-Atlantic's Mercy Fitzgerald Hospital and St. Francis Hospital in Delaware have seen patient volume tick up over the past two months, the hospitals' president, Marlow Levy, told the Philadelphia Business Journal. Riddle Memorial Hospital is expecting an influx of patients in its emergency department, the center's president, Shelly Buck, told Chief Healthcare Executive. Catch up quick: Prospect Medical Holdings filed for Chapter 11 bankruptcy in January. Earlier this week, the company said it would close the hospitals after failing to find a buyer for the facilities. That came after state and local officials funneled $40 million to Prospect while the company in an effort to keep the hospitals open. Flashback: The company also closed two other hospitals in Delaware County in 2022. Penn Medicine tells Axios it has worked for two years on "creative efforts" to help sustain Crozer Health, including offering $5 million to acquire and absorb leases for some of Crozer's Broomall and Brinton Lake outpatient facilities. Prospect Medical rejected the deal last week, a Penn spokesperson said, adding the decision has "negative impacts for patients and displace many talented healthcare professionals." Zoom in: Ambulances began diverting patients to other hospitals on Wednesday, per court documents. The hospitals' emergency rooms are expected to close on Friday, while emergency medical services end on May 2. Meanwhile, all patient services are expected to end at Crozer-Chester Medical Center on May 2, per court documents. Patient services at Taylor Hospital will cease on Monday, except home health services will fully close on May 11. The end of services is subject to change due to the transfer of patients and other issues.
Daily Mail
22-04-2025
- Health
- Daily Mail
Bankrupt healthcare giant closing two hospitals in Pennsylvania
Two hospitals in Pennsylvania are closing, in a devastating outcome for the local community. Crozer-Chester Medical Center and Taylor Hospital will shut after parent company Prospect Medical Holdings filed for bankruptcy in January. The healthcare giant has been trying to hammer out a deal with a potential buyer for months to avoid full closure of the facilities, but with no luck. 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.
