Many of you likely saw in the local news already that Prospect Medical Holdings – the California-based private equity firm that owns Crozer Health System – filed for Chapter 11 bankruptcy on Saturday.
While this news is disappointing, there's a silver lining: it provides an opportunity to take Crozer back from Prospect and transfer it into responsible hands -- not another private equity firm -- and stabilize the system for patients and workers.
In the meantime, I'm able to report that Prospect is cooperating with the state Attorney General and Governor Shapiro to divest from Crozer and put it under the state’s care temporarily through the bankruptcy court.
I want you to know that we are doing everything we can as state lawmakers to keep Crozer and Taylor’s facilities open, and they will remain open throughout the bankruptcy process.
As the Delco Times noted in its recent article, my House colleagues and I have been working proactively to prevent situations like this by advancing legislation that would strengthen the state attorney general’s oversight of proposed health system sales to private equity firms, giving the AG the ability to deny a request if it’s likely to result in facility closures. That legislation earned bipartisan support in the PA House last year, but the Senate declined to even hold a vote on it.
Earlier this week, the Delco Delegation released a statement that provides more detail on our plan moving forward, including mobilizing resources and partnerships to ensure that patients continue to receive care without disruption.
Out of the 15 hospitals that closed in PA over the past five years, 14 of them happened after a merger or acquisition by a private equity firm. While the executives in charge make millions, Pennsylvanians are left with health care deserts. That is no way to run a business that’s meant to provide care to people.
Enough is enough. When the time comes, I will be calling on the Senate to do its job to prevent tragedies like this from continuing to disrupt families across Pennsylvania.