Closure of Key Delaware County Hospitals Sparks Public Health Crisis, Criticism of Prospect Medical Holdings
April 23, 2025
The shutdown of these facilities has been described as creating a significant public health crisis due to reduced EMS capacity and limited treatment options for residents.
In a statement, the company expressed regret over the closures, stating they had attempted to find alternatives but ultimately could not, and will focus on transitioning patients to other facilities.
The judge overseeing the case acknowledged the complexities of the closure process, which involves multiple stakeholders and is likely to evolve throughout the transition.
Local officials and health advocates expressed deep disappointment, criticizing Prospect's management and financial practices that led to this situation after previous efforts to save the hospitals were unsuccessful.
The chief restructuring officer acknowledged the significant impact of the closures on patients and staff, while some ambulatory services will remain operational.
Prospect Medical Holdings, which owns Crozer Chester Medical Center and Taylor Hospital, has filed a motion to close both hospitals in Delaware County, potentially impacting over 2,500 employees.
Efforts to prevent the closures involved multiple court hearings and attempts by Delaware County and the Commonwealth of Pennsylvania to find a solution, highlighting the hospitals' importance to underserved communities.
Pennsylvania Governor Josh Shapiro criticized Prospect for alleged greed and mismanagement, calling for legislative action against private equity involvement in healthcare to prevent future closures.
Legislators are increasingly demanding accountability from private equity firms involved in healthcare management, emphasizing the need for a more sustainable system that prioritizes patient welfare.
Emergency departments at the hospitals will stop accepting ambulance patients after April 26, 2025, and will only accept walk-in patients until the end of the following week.
Credit rating agency S&P has rated Prospect's bonds as BB- with a negative outlook, indicating potential financial instability.
Prospect Medical rejected a $5 million offer from Penn Medicine to support operations and acquire certain assets, which was deemed crucial for community health.
Summary based on 22 sources
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Sources

TheStreet • Apr 24, 2025
Bankrupt healthcare company closes more hospitals
Patch • Apr 23, 2025
Crozer Health Closing After Judge's Reluctant Approval
The Philadelphia Inquirer • Apr 24, 2025
In the closure of Delco hospitals, a warning about private equity ownership