Prospect Medical Bankruptcy Update

Last Updated: April 16, 2025

Prospect Medical Bankruptcy Update

The Delaware County Health Department is committed to keeping residents informed about the recent bankruptcy filing by Prospect Medical Holdings and its potential impact on the County’s healthcare landscape.

Updates will include the latest news, guidance on accessing healthcare resources, and assistance available to help residents navigate this challenging time.

The county team is working around the clock with state officials, regional healthcare systems, and other partners to source solutions for our community and support the local employees of Prospect Medical/Crozer Health System.

Current Status of Crozer Health Facilities

Crozer-Chester Medical Center and Taylor Hospital will remain open while negotiations continue in the Prospect Medical Holdings bankruptcy proceedings. Delaware County welcomes this development and remains actively engaged with state officials, regional health systems, and other stakeholders to support a long-term solution that maintains healthcare access for County residents.

Previously, on March 6, 2025, Prospect Medical Holdings informed the bankruptcy judge that it would file a motion to close Crozer-Chester Medical Center and Taylor Hospital unless emergency negotiations led to a short-term solution. That closure notice remains on hold. Even if such a notice is filed, there would still be a period before any potential shutdown could proceed. The proposed order had also included the potential closure of additional facilities, including:

• Community Campus, 301 W. 15th St, Chester, PA 19013
• Crozer Medical Plaza at Brinton Lake, 300 Evergreen Drive, Glen Mills, PA 19342
• Crozer Health at Broomall, 30 Lawrence Road, Broomall, PA 19008
• Media Medical Plaza, 200 E. State Street, Media, PA 19063
• Surgery Center at Haverford, 2010 West Chester Pike, Suite 212

Information on the court filings is available at Omni Agent Solutions.

The filings in bankruptcy court are separate from the state’s required process for formally closing a health facility. Prospect Medical Holdings has not submitted a formal closure notice or plan to the Commonwealth of Pennsylvania for the Crozer Health System.

If a closure were to move forward, the state requires a transition plan to ensure continuity of care for all patients (both in-patient and outpatient). For current Crozer patients, it remains Prospect/Crozer’s responsibility to communicate care transfer details. Insured patients are encouraged to contact their health insurance provider for additional support.

As part of the court-approved bankruptcy proceedings, Crozer Health is currently operated by FTI Consulting, Inc., a national firm appointed as the temporary receiver. Delaware County played a key role in helping advance approximately $1 million in grant funds to FTI Consulting for mental health services—part of a broader funding package that is helping keep the hospitals open in the short term. No Delaware County property tax funds were used.

The County continues to plan for all scenarios—working toward the best-case outcome of continuity while preparing in case of service disruptions. Residents can call the Delaware County Health Department Wellness Line at (484) 276-2100 for updates and help navigating healthcare resources.

Prospect Medical Holdings Bankruptcy Background

• Prospect Medical Holdings, the parent company of Crozer Health, filed for Chapter 11 bankruptcy on January 11, 2025, in the United States Bankruptcy Court in Northern Texas.
• Crozer Health operates Crozer Chester Medical Center in Chester and Taylor Hospital in Ridley Park.
• This development places Delaware County’s most vulnerable—patients, families, and frontline healthcare workers—in a precarious position. It reflects years of mismanagement, financial exploitation, and disregard for public health and community well-being.

State Oversight and County Response

• Hospitals in Pennsylvania are regulated by the Commonwealth of Pennsylvania. The Pennsylvania Attorney General and Governor’s Office are working to transition Crozer Health into responsible nonprofit ownership.
• Delaware County Council and the County Executive are collaborating with:
• Congresswoman Mary Gay Scanlon
• State Representatives and Senators
• The Governor’s Office and Attorney General’s Office
• The Pennsylvania Department of Health
• Regional health system partners

These partnerships are focused on contingency planning to address potential impacts on healthcare services and ensure continuity of care for Delaware County residents.

What Residents Need to Know

• Stay updated by checking this page regularly for new information.
• For immediate medical emergencies, dial 9-1-1.
• Consider using urgent care facilities for non-emergency needs to reduce the burden on Emergency Medical Services (EMS). For guidance, visit the Emergency Room and Urgent Care Guide.
• DelGo Community Transit operates the Medical Assistance Transportation Program (MATP) and Shared Ride Transportation Program for Seniors. More information available here.

The Delaware County Health Department Wellness Line

The Delaware County Health Department Wellness Line is available to assist residents during this challenging time. Residents can call (484) 276-2100 for:

• Updates on the Prospect Medical Holdings bankruptcy.
• Guidance on navigating local healthcare resources, including urgent care and mental health services.
• Support with general health concerns and connecting to needed services.

Delaware County remains committed to supporting residents, providing clear updates, and ensuring access to critical healthcare resources throughout this period.

Emergency Preparedness and Municipal Resources

Delaware County has developed a Toolkit for Navigating Municipal Impacts of Prospect Bankruptcy to assist local governments in responding to potential disruptions in healthcare services. This toolkit provides guidance on emergency declarations, funding opportunities, EMS coordination, and municipal planning in the event of hospital closures. In collaboration with state and regional partners, Delaware County remains committed to ensuring continuity of care and supporting municipalities through this evolving situation.

Toolkit for Navigating Municipal Impacts of Prospect Bankruptcy.

For all County of Delaware Press Releases https://delcopa.gov/publicrelations/releases.html

Prospect Medical Holdings, Inc. is the owner of Crozer Health, which employs thousands of hard-working Delaware County residents in the medical field and related positions. Impacted residents can to reach out to the county’s PA CareerLink® (https://pacareerlinkdelco.org/) offices for re-employment support.