Crozer closure: Delco legislators push Pennsylvania AG to investigate Prospect Medical Holdings

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Delaware County lawmakers urged Pennsylvania Attorney General Dave Sunday to take action against Prospect Medical Holdings for closing Crozer Health ahead of Wednesday’s court hearing.

The Delaware County delegation asked Sunday to petition U.S. bankruptcy Judge Stacey Jernigan of the Northern District of Texas to compel Prospect to pay for ambulance coverage and to retrieve the $40 million in funding used to keep Crozer afloat.

“At the request of your office, the Commonwealth of Pennsylvania contributed $10.2M, Delaware County contributed $9.8M, and the Foundation for Delaware County contributed $20M,” the legislators wrote in a letter obtained Tuesday by WHYY News. “Given Prospect’s failure to reach a deal for an Asset Purchase Agreement, these dollars are needed to stand up care in the communities Prospect is leaving behind.”

The group of 15 state House and Senate members also called on the attorney general to open a criminal investigation into Prospect’s current and former owners, including its private equity investors who benefitted from the deal to sell Crozer’s real estate.

“Given the reports from staff on systemic divestment in the infrastructure over the nine years that Prospect owned the Crozer Health system, we implore you to leave no stone unturned in holding them accountable,” the lawmakers wrote.

Pa. AG responds: ‘Getting any money out of the bankruptcy will be difficult’

Prospect did not immediately respond to a request for comment.

The Pennsylvania Office of Attorney General later provided WHYY News with a letter Sunday sent in response to the delegation, acknowledging the “next legal phase of this case is seeking relief for the harms caused by the closure of Crozer in the bankruptcy court and elsewhere.”

He wrote that the outcomes of the efforts won’t be known for quite some time. Sunday cautioned “getting any money out of the bankruptcy will be difficult.”

“As to a possible criminal investigation, all I can say is that my office will adhere to the facts and the law of this situation,” Sunday wrote. “If criminal acts occurred that we have jurisdiction over, we will pursue them. We cannot otherwise comment on ongoing or potentially ongoing investigations. I know this is a frustrating posture, but protects potential future legal action. If a legal tool is available to us, we will use it to hold Leonard Green and Associates accountable.”

Prospect’s decision to close Delaware County’s largest health system this month has drawn widespread outrage from community members, Crozer employees and elected officials.