March 2025
Prospect Medical, the owner of the Crozer-Chester and Taylor hospitals, received a $20 million lifeline from the Foundation for Delaware County on Sunday, March 9, 2025. According to Prospect, the funds will allow both hospitals to remain open for two more weeks. The Pennsylvania Office of Attorney General brokered the deal, announced following a day-long meeting in Harrisburg.
Prospect is currently in bankruptcy proceedings. Efforts continue by the Attorney General’s Office and other concerned parties to develop a solution to keep the hospitals open long term. FTI Consulting -- the court-appointed receiver -- will oversee management of the two hospitals for the immediate future.
Delaware County has established a website for the latest news on the fate of the hospitals. The site can be accessed via this link.
Following a meeting on Friday, March 21st, the Foundation for Delaware County announced that both Crozer Chester Medical Center and Taylor Hospital will remain open while a long-term solution to the hospitals’ financial and ownership crisis is achieved. Funding has been secured to keep both facilities operating while a permanent nonprofit owner is identified. According to the Attorney General’s Office, FTI Consulting will work with the Foundation through this transition.
Here is the link to Delaware County’s informational website on the hospital saga.
2024
On November 12, 2024, the federal court set a timeline for the parties to respond to the initial case filings and invoked a state statute that will prohibit Prospect from any service cutbacks prior to July 1, 2025.
On October 31, 2024, Prospect took action to transfer the case to federal court.
On October 29, 2024, Pennsylvania Attorney General Michelle Henry announced the filing of a lawsuit against Prospect Medical Holdings, Inc. The lawsuit alleges Prospect Medical has broken an Asset Purchase Agreement, approved by a court in 2016, by cutting services and closing facilities, while diverting funds to private shareholders and investors, rather than supporting the healthcare network. The lawsuit is also seeking a preliminary injunction to preserve existing service lines, the appointment of a receiver to manage the Crozer Health System for the immediate future to avoid additional closures and cuts to services. Click here to read the press release, complaint, and injunction.
On August 7, 2024, Prospect Medical Holdings, Inc. signed a letter of intent to sell Crozer Health to a New Jersey real estate company CHA Partners, LLC. The plan calls for CHA to work with Healthcare Preferred Partners, an affiliated company, on the management of Crozer and its conversion back into a nonprofit. Click here to review the Letter of Intent Between Prospect Medical and CHA Partners, LLC | Crozer Health
2022
In November 2022, the Pennsylvania Department of Health closed Delaware County Memorial Hospital for inadequate staffing. According to the Crozer Health website, this hospital continues to remain temporarily closed. Review the Crozer Health website for updates on this hospital.
In February 2022, Wilmington-based ChristianaCare Health System signed a letter of intent to acquire Crozer Health from its parent company, Prospect Medical Holdings. After months of negotiation, ChristianaCare decided not to buy Crozer Health.
2016
On June 28, 2016, Prospect Medical Holdings, Inc. acquired Crozer Health switching it to a for-profit health system. Crozer Health consists of four Pennsylvania hospitals: Crozer-Chester Medical Center in Upland, Delaware County Memorial Hospital in Drexel
Hill, Springfield Hospital in Springfield, and Taylor Hospital in Ridley Park.
Crozer Health website: Crozer Health