DELAWARE COUNTY, PA – January 14, 2025 – Members of the Delaware County State and Legislative Delegation and Delaware County Council yesterday held a press conference to address the recent announcement that Prospect Medical Holdings, Inc. has filed for Chapter 11 bankruptcy in federal court.
The delegation, joined by Delaware County Council, local elected officials, members from the Pennsylvania Association of Staff Nurses and Allied Professionals (PASNAP), healthcare workers, local healthcare advocates and community stakeholders, did not mince words in condemning Prospect’s reckless mismanagement of the Crozer Health System and demanded accountability for the company’s failure to prioritize patient care and community well-being.
Speaking during the press conference on behalf of the delegation and county council, Senators Tim Kearney, Amanda Cappelletti, John Kane, Representatives Leanne Krueger, Carol Kazeem, Lisa Borowski and County Council Chair Dr. Monica Taylor emphasized that this bankruptcy is not just a financial matter but a public health crisis with far-reaching consequences for healthcare access, jobs, and pensions in the region. Upon learning of the bankruptcy late Saturday, the state legislative delegation and county council promptly responded by issuing a joint statement condemning Prospect and reaffirming their commitment to holding the company accountable. They also focused on finding a path forward to ensure the continuity of services at Crozer Health System hospitals and protecting the community from future disruptions.
The delegation also underscored the urgent need for state and federal policy reforms.
Since 2022, Delaware County state and house legislators have introduced several bills to address the harmful impacts of for-profit healthcare, including legislation directly responding to Prospect’s mismanagement.
Additionally, the legislators referenced a recent bipartisan Senate report that detailed the destructive practices of private equity firms in the healthcare sector and called for greater federal oversight.
This latest announcement has reinvigorated the delegation’s positioning that state reform is urgently needed.
Earlier today, several co-sponsorship memos were introduced to strengthen safeguards against predatory practices and ensure the sustainability of critical healthcare institutions in Pennsylvania.
Senate co-sponsorship memos:
- Protecting Healthcare Institutional Sustainability from Harmful Deals
- For-Profit Healthcare Reform: Prohibit For-Profit Hospitals
House co-sponsorship memos:
- Protecting Pennsylvania Health Services and Facilities
- Moratorium and Study on For-Profit Hospital Ownership
Press conference speakers also included Peggy Malone, North Campus President for PASNAP, who commended state and local leaders, the Office of the Attorney General and the Governor’s office for their collective attention to protecting healthcare.
“We are grateful that we have such wonderful state and local leaders, the Attorney General’s Office, and the Governor who have listened to us from day one when we started saying that this for-profit healthcare company is no good for our healthcare system,” said Malone. “They (Prospect) have taken everything from us. While our local and state leaders are working hard to make sure this company is gone, and ensure we are able to escape bankruptcy to keep our hospital and health system standing and provide quality care, I can promise you that the workers inside these buildings will not stop fighting.”
As the bankruptcy proceedings move forward in federal court, the delegation reassured constituents that they would continue to advocate for the rights of residents, healthcare workers, and retirees affected by Prospect’s decisions.
Community members with questions about the bankruptcy, and who need assistance in locating healthcare resources are encouraged to contact the Delaware County Health Department Wellness Line at (484) 276-2100.
For more information about this press release, contact Senator Tim Kearney’s office at 610-544-6120.
###