Delaware County Council and State Delegation Respond to Prospect Medical Holdings'
Released: January 13, 2025
Delaware County Council and State Delegation Respond to Prospect Medical Holdings’ Bankruptcy Announcement
DELAWARE COUNTY, PA – Today, Delaware County Council, joined by members of the Delaware County delegation and the broader Delaware County Team, held a press conference to address the abrupt bankruptcy announcement by Prospect Medical Holdings, the parent company of Crozer Health.
Officials acknowledged that while Crozer Chester Medical Center and Taylor Hospital remain fully operational for now, with no closures or reductions in services currently announced, the situation remains precarious. Prospect Medical Holdings’ track record of financial mismanagement and service reductions has left the community on edge, and County leaders are preparing for the possibility that additional closures may be forthcoming. Although Prospect has committed to continuing hospital operations, paying staff, and maintaining vendor payments during the Chapter 11 bankruptcy process, officials emphasized that the company's past actions warrant skepticism and close scrutiny.
“This bankruptcy places our community’s most vulnerable—patients, families, and frontline healthcare workers—in an increasingly precarious position,” said Delaware County Council Chair Dr. Monica Taylor. “It is the unfortunate culmination of years of mismanagement, financial exploitation, and an alarming disregard for public health and the well-being of our residents. However, this also presents an opportunity to take Crozer back from Prospect and transfer it into responsible hands to stabilize the system for patients and workers.”
Immediate Impact on Hospital Operations
Officials emphasized that Crozer’s hospitals, EMS operations, and mental health services are open and will remain open during the bankruptcy process. Employees will continue to be paid, and Prospect is cooperating with the Pennsylvania Attorney General and Governor Josh Shapiro’s office to divest Crozer Health and transfer it to a responsible nonprofit healthcare organization.
“County leadership is working closely with state and local partners to ensure that there is no interruption to emergency and behavioral health services,” said Dr. Taylor. “Our newly formed Delaware County Health Department, led by Director Lora Werner, is here to support residents with questions and provide updates during this uncertain time.”
“Our goal is to support our county residents with the information they need to navigate this challenging time,” said Director Werner. "The Health Department is here to provide updates and to help residents navigate available healthcare resources in the area."
Residents may call the Delaware County Health Department Wellness Line at (484) 276-2100 for updates regarding the bankruptcy as they become available and for assistance navigating available healthcare resources in the area.
The Financial Burden of For-Profit Healthcare
The impact of Prospect’s ownership extends beyond the hospital walls. Prospect has not only neglected its obligations to patients and staff but has also imposed a significant financial burden on the County and its municipalities by failing to pay over $13 million in real estate taxes. Taxing authorities, including the County of Delaware, Springfield Township, Springfield School District, Upland Borough, Ridley School District, and Upper Darby School District, have been forced to shoulder this gap—resources that should have been reinvested in local communities rather than subsidizing the failures of a for-profit operator.
“This is yet another example of how for-profit healthcare prioritizes shareholder dividends over community well-being,” said Delaware County Council Member Christine Reuther. “The financial impact of Prospect’s failure to pay taxes has rippled through our schools, our municipalities, and our County. These funds could have been used to improve education, public safety, and community services, but instead, they’ve been diverted to offset the failures of a corporation that has shown little regard for its obligations.”
Chapter 11 Bankruptcy Process
Prospect filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court in Northern Texas. Chapter 11 allows a company to continue operating while restructuring its debt. This includes addressing significant financial obligations such as their $150 million mortgage to Medical Properties Trust, obligations to the Crozer pension fund, and other liabilities.
The Pennsylvania Attorney General’s Office is representing Delaware County communities in the bankruptcy case and remains committed to removing Prospect from ownership and ensuring the system is transitioned to responsible leadership.
Legislative Delegation’s Role
Members of the Delaware County delegation are actively working with Governor Shapiro’s office to determine a long-term solution for Crozer Health. The delegation is also reintroducing legislation to provide state oversight of hospital sales and major financial transactions, aiming to prevent such crises in the future.
“Hospitals are closing or declaring bankruptcy across the state,” said Dr. Taylor. “This is a statewide issue, and we are working with bipartisan leaders to address it head-on.”
Delaware County’s Role
Delaware County has convened a working group of healthcare providers, officials, and community partners to prepare contingency plans in the event of any disruption to Crozer Health’s operations. Officials emphasized that the creation of the Delaware County Health Department and partnering with the Delaware County Department of Emergency Services and Regional Emergency Medical Services has been instrumental in responding to this crisis.
Dr. Taylor also expressed deep appreciation for healthcare workers at Crozer Chester Medical Center and Taylor Hospital, calling them “the rock of this community,” adding “Despite layoffs, underfunding, and worsening conditions, they have continued to provide care with dedication and professionalism. These healthcare heroes deserve not only our gratitude but meaningful action to support their work.”
A Path Forward
Delaware County leaders reaffirmed their commitment to ensuring that healthcare services remain accessible and reliable for all residents. “This is our home, and together, we will rise to meet these challenges,” said Dr. Taylor. “We will not rest until we have rebuilt a system that puts people first.”
For more information, residents are encouraged to visit Delaware County’s website or call the Delaware County Health Department Wellness Line at (484) 276-2100.
