Irate Delco officials angered — yet cautiously optimistic — following Crozer Health owner’s bankruptcy filing

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Enraged Delaware County lawmakers hammered into Prospect Medical Holdings in the aftermath of the California-based company’s decision to file for Chapter 11 bankruptcy on Saturday.

The for-profit owner of Delaware County’s Crozer Health didn’t surprise local officials, who had an inkling of this possibility, but it troubled the elected leaders nonetheless.

“This bankruptcy places our communities’ most vulnerable patients, families and our frontline health care workers in an increasingly precarious position,” said Dr. Monica Taylor, chair of Delaware County Council at Monday’s joint press conference.

Prospect acquired Crozer Health in 2016. The company, which also oversees hospitals in California, Connecticut and Rhode Island, has been at the helm as Crozer has dramatically cut back on vital services.

The fiscally flailing, once four-hospital system in Delco is down to just Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park. The other two are dormant.

“Prospect’s Chapter 11 filing is the unfortunate culmination of years of mismanagement, financial looting and willful disregard for public health, and the well-being of the people that they serve and the employees in the system,” Taylor said, standing alongside healthcare workers and members of the Delaware County State Legislative Delegation.

Prospect declined to comment.

The bankruptcy has pumped the brakes on the Pennsylvania Office of Attorney General’s suit filed in October against Prospect. Nevertheless, elected officials are still looking for some semblance of accountability.

Additionally, state lawmakers have recently reintroduced legislation seeking to expel for-profit hospitals and rein in the commonwealth’s poor oversight of acquisitions and mergers.

“A staggering 14 of the last 15 hospital closures in the last five years in Pennsylvania have occurred following a merger or acquisition,” state Rep. Lisa Borowski said.

Prospect plans to refocus its attention on California while looking to continue selling hospital systems in Connecticut, Pennsylvania and Rhode Island. Although officials bashed Prospect for the bankruptcy filing, the move did provide some relief. They expect it will make the hospitals easier for a potential buyer to acquire.

“I can tell you that there is interest,” state Sen. Tim Kearney said. “There are health care systems that are interested in coming in, but nobody wants to get involved in the pension issue or the outstanding debt or the mortgage payments, essentially — and those are the things that the bankruptcy court will be able to push through.”

It’s unclear which major medical players would be lining up to purchase parts of or the entire hospital system.

“This bankruptcy provides a path to actually move forward and we’re kind of pleased about that,” Kearney said.

The weeks prior to the bankruptcy filing have been a whirlwind inside Crozer’s remaining hospitals. There was an electrical fire at Crozer-Chester Medical Center, which prompted an evacuation of critical care patients. Technical issues with radiology services forced Crozer to briefly close its emergency departments at the start of December.

“Just last week, we were not able to get snacks for our patients in the inpatient psychiatric unit,” said Peggy Malone, president of the Crozer-Chester Nurses Association. “We live this every day, so we weren’t surprised to hear [about the bankruptcy]. Extremely disappointed. Extremely disappointed that Prospect has taken it to this level, but now we are hopeful.”

Hospital management has assured workers that Crozer will not close during the bankruptcy. Malone said her colleagues have been able to provide stellar care with “very little” resources.

“Every single person who still works at Crozer works there because they care,” Malone said. “We all, since COVID, could have gone somewhere else. We could have gotten jobs somewhere else. We could have made the same money — but we stay because we care about this community and we care about these people and these patients.