Prospect Medical Holdings files intent to close Crozer Health and all outpatient facilities
Rep. Leanne Krueger April 21, 2025
Today our worst fears came true when we learned that Prospect Medical Holdings filed in the U.S. Bankruptcy Court a motion to close Crozer Health and all of the outpatient facilities licensed with the hospital. They also issued notices to their employees saying they expected layoffs to happen between April 25 and May 2nd. Prospect is hoping for an expedited closure (meaning they want to close faster than what the current regulations allow ) but the bankruptcy judge in Texas will need to approve an expedited closure motion. That hearing has not yet been scheduled as I write this message, but we’re expecting an emergency hearing to be scheduled as soon as tomorrow. When the hearing is scheduled, it can be viewed virtually in real time at https://us-courts.webex.com/meet/jerniga (just make sure you mute your microphone because previous hearings have been disrupted by viewers with their microphones on).
I am deeply disappointed that we are at this point, but I am not surprised. Prospect is willfully closing Crozer Health after state and local officials, regional health systems, and philanthropic partners exhausted our ability and financial resources to salvage the hospital system. Yet again, Prospect decided to put profits over patients by putting Crozer’s assets up for auction.
Click here to read the joint statement made today by the entire Delaware County Legislative Delegation.
I have repeatedly asked the Attorney General’s office to hold Prospect and their former owners accountable with criminal charges for their gross mismanagement and extracting resources from our health care system to make themselves richer. The bankruptcy judge in Texas has the ability to claw back resources through the bankruptcy proceedings and they need to do so. Every time they got close to a deal on a sale, I got reports that Prospect had done something to blow up the deal. This has happened three separate times.
Right now, my staff and I are focused on the immediate safety of patients. It is Prospect’s responsibility to ensure an orderly and safe closure, including patient transfers, but if we learn of an issue that violates their duty that we will escalate it immediately. Delaware County’s Workplace Development Board is already setting up services to help Crozer employees find jobs. Delaware County’s Health Department Wellness Line is available to assist residents at 484-276-2100. Delaware County has also been working on an emergency plan for EMS in the event of a closure and I expect to know more about where that stands later tonight.
I will continue to keep you updated through my website and on social media.