Crozer-Chester Medical Center and Taylor Hospital Closing Amid Bankruptcy
TL/DR –
Crozer-Chester Medical Center and Taylor Hospital in Pennsylvania will be closed by Prospect Medical Holdings, the parent company of Crozer Health, following a failure to find a buyer. The closure process is expected to take 30 days, with thousands of employees informed by email of imminent layoffs in line with the Worker Adjustment and Retraining Notification Act of 1988. Pennsylvania state officials and regional health systems had tried to prevent the closure, with $40 million spent to keep the two hospitals open, but remaining funds are now depleted.
Closure of Crozer-Chester Medical Center and Taylor Hospital
After a sustained period of uncertainty, Prospect Medical Holdings announced the closure of Crozer-Chester Medical Center and Taylor Hospital in Delaware County, Pennsylvania. Employees at Crozer Health were informed of the shutdown, which comes despite attempts to find a buyer for the hospitals and other facilities.
Prospect Medical Holdings’ Closure Plan
The closure of Crozer Health and its outpatient facilities was initiated by a motion filed by Prospect Medical Holdings in the U.S. Bankruptcy Court in Northern Texas. The company, headquartered in California, expects the full closure to be completed within 30 days. The decision to wind down operations was relayed to employees, in compliance with the Worker Adjustment and Retraining Notification Act of 1988, via emails.
This federal law mandates that employers with 100 or more employees notify their workforce, unions, and local government officials in the event of a closure or mass layoff. The court motion filed by Prospect indicates that patients will be diverted from the emergency departments starting Wednesday, with inpatient admissions ceasing shortly afterward. Fortunately, the ambulatory surgery and imaging centers at Brinton Lake, Broomall, Haverford, and Media will remain operational.
Implications of Hospital Closures
Prospect’s closure plan has drawn strong reactions from the community. State Senator Tim Kearney revealed that state officials, the county, and the Foundation for Delaware County have tried to prevent the closure, investing $40 million to keep the hospitals open. However, the funds have run out.
Neighboring hospitals like ChristianaCare Wilmington Hospital, Riddle Hospital, and Penn Presbyterian Medical Center are preparing to accommodate Crozer Health’s patients. Meanwhile, Delaware County has declared a seven-day disaster emergency to aid those affected by the closure.
Response to Planned Closures
Many, including Pennsylvania Governor Josh Shapiro, have blamed Prospect for the closures, accusing them of greed and mismanagement. He called for legislation to prevent private equity from entering the healthcare business in Pennsylvania. Similarly, the Pennsylvania Office of Attorney General expressed its deep disappointment and vowed to hold Prospect accountable for its actions through the bankruptcy process.
Sources of Assistance
A dedicated call center has been established by Prospect for queries related to the hospital transition. Delaware County residents can also seek help through the Delaware County Health Department’s Wellness Line.
Effects of Closures on Nearby Businesses
Local businesses like Dolan’s Bar in Ridley Park, which see a significant boost from hospital employees, are bracing for the closures’ impact. The owner, PJ Dolan, lamented about the disregard for community impact in favor of profits.
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