Crozer Health's parent company declares Chapter 11 bankruptcy: What it means for Delco
CHESTER, Pa. - Delaware County officials gathered Monday to express their anger and disappointment in Prospect Medical Holdings, the parent company of Crozer Health System, which has declared Chapter 11 bankruptcy.
"Our health should not be contingent upon our ZIP Code and the size of our paychecks," said Senator Cappelletti.
For decades, Crozer Health System has been a part of the Delaware County community, providing care. Crozer Health is home to Delaware County's only trauma and burn center and the bankruptcy filing now threatens hundreds of jobs.
"Prospect Medical Holdings has failed us. They have repeatedly put profit before people. Now they are declaring bankruptcy, prepared to leave our community without a hospital and our dedicated healthcare workers without jobs," said Senator Kane.
The Los Angeles-based private equity firm that owns Crozer has declared bankruptcy, hoping to eliminate their debts.
"This national announcement, while deeply upsetting, comes as no surprise. For years, this delegation and county leaders have been raising the alarms about reckless practices of private equity firms in healthcare. This moment confirms that our concerns are valid," said a local leader.
Leaders who gathered in Media said the stability of Crozer Health is in jeopardy, along with thousands of jobs, patients, and pension funds.
"Let me be clear, this is not just a financial matter. This is a public health crisis. Prospect Medical Holdings has systematically stripped resources from its facilities, prioritizing profit over patient care and leaving our communities to shoulder the fallout," said another official.
Angela Neopolitano, a nurse of 43 years who worked at Delaware County Memorial before it closed a few years ago, says under Prospect, the hospital has faced many challenges.
"It is just very difficult. It's been a difficult last four years of my career. I've gone through COVID, I've gone through so many things, and this has been the worst. They just cut, cut, cut, cut, cut, and it's sad. It's sad for the people of the community, it's sad for us that work there, it's sad for DELCO people," Neopolitano said.
If Crozer were to close, the closest hospitals would be Middle and Mercy Fitzgerald. However, Crozer has Delco's trauma center, stroke center, and burn center.
Leaders want to make it clear the battle is not over.
"No, this is not a closure. Bankruptcy filing does not mean this hospital is closing today, and we will fight like hell to keep it open," said Representative Krueger.
State Rep. Kazeem added, "Healthcare is a basic human right. There's no ands, ifs, or buts about it."
FOX 29 reached out to Prospect but did not hear back.